8/9/2023 0 Comments First tennessee bank log inThat settlement resolved allegations that First Tennessee failed to comply with FHA origination, underwriting and quality control requirements.Īs part of the settlement, First Tennessee admitted that from January 2006 through October 2008, it “repeatedly certified” for FHA insurance mortgage loans that did not meet the Department of Housing and Urban Development’s underwriting requirements.īut now, First Tennessee has run afoul of HUD lending rules again, as HUD announced Monday that it reached a settlement with First Tennessee over allegations that the bank violated the Fair Housing Act by discriminating against African-American and Hispanic mortgage loan applicants by denying them mortgage loans, and by allegedly failing to place bank branches in minority-concentrated areas. In June 2015, First Tennessee Bank agreed to pay $212.5 million to resolve allegations that it violated the False Claims Act by “knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration that did not meet applicable requirements.” ![]() The Memphis-based First Horizon, formerly First Tennessee Bank, entered the Chattanooga market in 1976 when it acquired the assets of the failed Hamilton National Bank in Chattanooga.īharat Masrani, CEO for the TD Bank Group, said in a statement Thursday he was "disappointed with the outcome," but he said TD will "move forward with a strong, growing franchise in the United States.( Update: This article is updated with a statement from First Tennessee.)įor the second time in just over six months, First Tennessee Bank, the regional bank for First Horizon National, is settling with the federal government over allegations that it violated U.S. "Our strong capital position, disciplined credit quality, expense control measures and well-diversified and stable funding mix have enabled our business to navigate challenging banking industry dynamics and remain focused on executing our client-centric growth plan." "While today's announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability," First Horizon CEO Bryan Jordan said in a statement Thursday. ![]() This payment is in addition to the $25 million fee reimbursement due to First Horizon pursuant to the merger agreement. Under the terms of the termination agreement, TD will make a $200 million cash payment to First Horizon. "Because there is uncertainty as to when and if these regulatory approvals can be obtained, the parties mutually agreed to terminate the merger agreement," the banks said in a joint statement Thursday. In a statement, TD said it did not have a timetable for regulatory approvals to be obtained for reasons unrelated to First Horizon. Shares of First Horizon plunged more than 42% before the opening bell Thursday and were trading down by more than 34% at midday Thursday after the TD purchase was scrapped. TD Bank has sizeable operations in the U.S., but the acquisition of First Horizon would have expanded the bank's presence in the Southeast by adding more than $80.7 billion in bank assets, including more than $3.2 billion of deposits in the Chattanooga market - the largest of the 28 commercial banks with operations in metropolitan Chattanooga. But the deal faced greater scrutiny as interest rates have risen and some depositors became more wary of regional banks after the failure of Silicon Valley, Signature and First Republic banks over the past month. ![]() Toronto-Dominion Bank said in February 2022 it was buying Tennessee's biggest bank in a $13.4 billion all-cash deal, and shareholders of First Horizon approved the sale in May 2022. on Thursday said they've called off a planned merger, citing regulatory hurdles.
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