First Horizon has agreed to pay $212.5 million to settle claims tied to the Memphis, Tenn., company's past underwriting and origination of certain loans.

The $25.7 billion-asset company said in a press release Thursday that it had reached a settlement with the Department of Housing and Urban Development and the Department of Justice tied to “a key outstanding matter” tied to a mortgage business it sold in 2008. The settlement is related to FHA-insured loans that the company originated in 2006, 2007 and 2008.

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