Item 8.01. Other Events.
The financial impacts of these matters are reflected in the financial statements that will be filed with First Horizon's Annual Report on Form 10-
As was disclosed previously by First Horizon, for several years First Horizon has been working with two government-sponsored enterprises ("GSEs") to resolve requests by the GSEs that First Horizon repurchase mortgage loans sold to the GSEs prior to 2009 based on alleged breaches by First Horizon of representations and warranties made to the GSEs at the time of sale. For most of that period resolutions had occurred based on loan-by-loan review. In fourth quarter 2013 First Horizon entered into a definitive resolution agreement ("DRA") with one of the GSEs, as discussed in First Horizon's most recent quarterly report on Form 10-Q. Now First Horizon has entered into a DRA with the other GSE, Freddie Mac.
The new DRA resolves certain legacy selling representation and warranty repurchase obligations to Freddie Mac associated with loans originated from 2000 to 2008 excluding certain loans First Horizon no longer serviced at the time of the DRA. Under the DRA, First Horizon remains responsible for repurchase obligations related to certain excluded defects (such as title defects and violations of Freddie Mac's Charter Act) and First Horizon continues to have obligations related to mortgage insurance rescissions, cancellations and denials. With respect to loans where there has been a prior bulk sale of servicing, First Horizon is not responsible for mortgage insurance cancellations and denials to the extent attributable to the acts of the current servicer.
Item 2.02. Results of Operations and Financial Condition.
Item 7.01. Regulation FD Disclosure.
Furnished as Exhibit 99.1 is a copy of First Horizon's press release related to certain of the matters discussed above, which is scheduled to be issued
The foregoing information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition," and Item 7.01, "Regulation FD Disclosure." The exhibit speaks as of the date thereof and First Horizon does not assume any obligation to update said information in the future.
Item 9.01. Financial Statements and Exhibits.
The following exhibit is furnished pursuant to Items 2.02 and 7.01, is not to be considered "filed" under the Securities Exchange Act of 1934, as amended ("Exchange Act"), and shall not be incorporated by reference into any of First Horizon's previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
Exhibit # Description 99.1 Press Release scheduled to be issued
February 27, 2014. * * * * * 2