First Tennessee has said it will cooperate

First Tennessee has said it will cooperate fully with the probe, which HUD said was prompted by FHA Commissioner David Stevens “alarm” at the “incidence of claims against the FHA insurance fund by a number of poor performing companies and reached out to the HUD OIG for assistance.” The bank already has suffered heavy financial losses as a result of mortgage businesses around the country that it started buying up in the late 1990s, and now those businesses — which began exhibiting trouble with the housing downturn and were sold to MetLife in 2008 — could end up being the source of further woes for the bank’s parent company, First Horizon National.