$212.5 Million Settlement reached to resolve False Claims Act Allegations against First Tennessee Bank N.A.

Settlement Amount: 

A settlement has been reached resolving False Claims Act allegations by First Tennessee Bank N.A. who is accused of 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.

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.

If you have a similar case please fill out the form below or email mail@whistleblowerinstitute.com or call: 619-452–1218


If you or someone you know experienced a similar situation or any other wrongdoing within a corporation you should contact mail@whistleblowerinstitute.com or call: 619-452–1218

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