First Horizon Accused Of Reinsurance Kickback Scheme

Law360, New York (June 01, 2012, 5:38 PM ET) -- First Horizon National Corp. and a number of mortgage insurers were hit with a proposed class action Thursday in Pennsylvania federal court alleging they are engaged in a scheme in which insurers pay First Horizon kickbacks disguised as reinsurance premiums in exchange for referrals.

Homeowners Saydei Barlee and Barry Broome allege that First Horizon refers customers to United Guaranty Residential Insurance Co., Genworth Mortgage Insurance Corp., Republic Mortgage Insurance Co. and Radian Guaranty Inc., who in turn pay First Horizon kickbacks through its subsidiary FT Reinsurance...
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