First Tennessee sells 14B in first lien mortgage loans

First Tennessee Bank N.A. has sold $14 billion of first lien mortgage loans to an undisclosed buyer, the bank announced.

The deal was finalized Jan. 27 and is expected to close Jan. 30 with actual transfer of the liens to follow within 90 to 120 days. Further terms of the sale were not disclosed.

First Tennessee spokesman Anthony Hicks says the buyer of the liens requested to not be identified.

The sale decreases the Memphis-based bank’s first lien mortgage loan portfolio to $48 billion and represents 22 percent of the bank’s previous outstanding balance of about $62 billion. The portfolio was about $100 billion a year ago, the company says.

The bank says the sale will have no financial impact on quarterly results, but was “reflective of First Tennessee Bank's ongoing strategy to reduce its investment in mortgage-servicing rights.”

In June, First Tennessee said it would sell a portion of its residential mortgage origination and servicing business to MetLife Bank N.A., a subsidiary of MetLife Inc.

Milestone Advisors LLC served as financial adviser to First Tennessee Bank. Baker Donelson Bearman Caldwell & Berkowitz PC provided legal counsel.

First Horizon National Corp. (NYSE: FHN) is the parent company of First Tennessee Bank. The company's others brands include a capital markets division, FTN Financial and mortgage lending through First Horizon Home Loans.

http://www.bizjournals.com/nashville/stories/2009/01/26/daily27.html

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First Tennessee sells 14B in first lien mortgage loans