Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us


July 31, 2015 12:25 AM ET

Banks

Company Overview of First Tennessee Bank National Association

Company Overview

First Tennessee Bank National Association provides diversified financial services for consumers, businesses, financial institutions, and governments in Tennessee. It offers personal banking services, such as checking accounts, savings accounts and CDs, mobile banking and online services, and prepaid cards; home equity loans, mortgages, credit cards, and personal and auto loans; annuities, insurance solutions, online trading solutions, advisory services, and other investments; and trust services. The company provides business and corporate banking solutions, including checking accounts, savings accounts and CDs, credit cards, and mobile and online banking services; cash and treasury managemen...

165 Madison Avenue

Memphis, TN 38103

United States

Founded in 1864

Phone:

901-523-4883

Fax:

901-523-4030

Key Executives for First Tennessee Bank National Association

Chief Financial Officer and Vice President
Age: 66
Chief Executive Officer of First Horizon National Corp
Age: 53
Regional President of First Tennessee Bank - Williamson County
President of Banking For West Tennessee and Manager of Private Client Trust & Wealth Management Services - Memphis
Age: 65
President of Knoxville
Compensation as of Fiscal Year 2015.

First Tennessee Bank National Association Key Developments

First Tennessee Bank N.A. Agrees to Pay $212.5 Million to Resolve False Claims Act Liability Arising from FHA-Insured Mortgage Lending

First Tennessee Bank N.A. has agreed to pay the $212.5 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced. Between January 2006 and October 2008, First Tennessee, through its subsidiary First Horizon Home Loans Corporation (First Horizon), participated in the FHA insurance program as a Direct Endorsement Lender (DEL). As a DEL, First Tennessee had the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL such as First Tennessee approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, neither the FHA nor HUD reviews a loan before it is endorsed for FHA insurance. DELs such as First Tennessee are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance, to maintain a quality control program that can prevent and correct deficiencies in their underwriting practices and to self-report any deficient loans identified by their quality control program. In August 2008, First Tennessee sold First Horizon to MetLife Bank N.A. (MetLife), a wholly-owned subsidiary of MetLife Inc., which thereafter originated FHA-insured mortgages under the MetLife name. In February 2015, MetLife agreed to pay $123.5 million to resolve its False Claims Act liability arising from its FHA originations after it acquired First Horizon from First Tennessee. The settlement announced resolves allegations that First Tennessee failed to comply with FHA origination, underwriting and quality control requirements. As part of the settlement, First Tennessee admitted to the following facts: From January 2006 through October 2008, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. Beginning in late 2007, First Tennessee significantly increased its FHA originations. The quality of First Tennessee’s FHA underwriting significantly decreased during 2008 as its FHA lending increased. Beginning no later than early 2008, First Tennessee became aware that a substantial percentage of its FHA loans were not eligible for FHA mortgage insurance due to its own quality control findings. These findings were routinely shared with First Tennessee’s senior managers. Despite internally acknowledging that hundreds of its FHA mortgages had material deficiencies, and despite its obligation to self-report findings of material violations of FHA requirements, First Tennessee failed to report even a single deficient mortgage to FHA. First Tennessee’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.

First Tennessee Bank Agrees to Pay $212.5 Million to Settle Mortgage-Related Issues

First Tennessee Bank, the regional bank for First Horizon National Corp. announced that it has agreed to pay $212.5 million to settle a key outstanding matter related to the mortgage business the company sold in 2008. First Tennessee has an agreement in principle with the United States Department of Housing and Urban Development and the United States Department of Justice to settle certain potential claims related to First Tennessee's underwriting and origination of FHA-insured mortgage loans from January 1, 2006, through December 31, 2008, which have gone to claim not later than April 2, 2015. Final legal resolution remains subject to negotiation and execution of a formal written settlement agreement satisfactory to all parties. First Horizon said it previously reserved $50 million for this matter and expects to report a pre-tax expense of $162.5 million related to the agreement in principle in first quarter financial results.

First Tennessee Bank NA Announces Board Changes

First Tennessee Bank NA named Renee Drake as executive vice president for commercial banking in Nashville. Drake was formerly the senior vice president of commercial banking and wealth management executive for the Tennessee affiliate of Fifth Third Bank. She takes over from Tony Thompson, who was named First Tennessee Bank's president for the Columbia, Tenn., market.

Similar Private Companies By Industry

Company Name Region
Community National Bank (Midland, TX) United States
Swann Bancshares Inc. United States
Bank of Ocean City United States
Bank of Bluffs United States
TrustAtlantic Bank United States

Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
October 22, 2014
Trustatlantic Financial Corporation
 

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
NYC2012, Inc. United States
Bertelsmann AG Europe
Rush University United States
Greater Houston Partnership United States

Sponsored Financial Commentaries

Sponsored Links

Report Data Issue

To contact First Tennessee Bank National Association, please visit www.firsttennessee.com. Company data is provided by Capital IQ. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.