First Tennessee Bank and 14 other mortgage lenders are under the microscope of federal housing officials after being served with subpoenas on Tuesday because of suspiciously high default rates for loans backed by the Federal Housing Administration.
The latest actions are part of a broad crackdown on lenders as the mortgage agency tries to stem massive losses linked to the national housing meltdown last year. The largest lender under the FHA's magnifying glass is First Tennessee Bank, a subsidiary of Memphis-based First Horizon National Corp. The bank is one of the larger in the Nashville market.
First Horizon issued a statement saying that the subpoena suggests no wrongdoing, and that the bank remains in good standing with the FHA and plans to cooperate with the federal government.
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