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Exhibit 1.4
EXECUTION
FIRST HORIZON ASSET SECURITIES
INC.
MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2007-AR2
TERMS AGREEMENT
(to Underwriting Agreement,
dated March 24, 2006
among the Company, First Horizon
Home Loan Corporation
and the Underwriter)
| First Horizon Asset
Securities Inc. |
|
Charlotte, North
Carolina |
| 4000 Horizon
Way |
|
June 22,
2007 |
| Irving, Texas
75063 |
|
|
Banc of America Securities LLC
(the “ Underwriter
”) agrees, subject to the terms and
provisions herein and of the captioned Underwriting Agreement (the
“ Underwriting
Agreement ”), to purchase such Classes of Series 2007-AR2
Certificates specified in Section 2(a) hereof (the “
Offered Certificates ”). This letter supplements and modifies the
Underwriting Agreement solely as it relates to the purchase and
sale of the Offered Certificates described below. The Series
2007-AR2 Certificates are registered with the Securities and
Exchange Commission by means of an effective Registration Statement
(No. 333-143015). Capitalized terms used and not defined herein
have the meanings given them in the Underwriting
Agreement.
Section 1.
The Mortgage Pools : The Series 2007-AR2 Certificates shall evidence the
entire beneficial ownership interest in three mortgage pools
(collectively, the “ Mortgage
Pools ”) of primarily 30-year
adjustable rate, first lien, fully amortizing one- to four-family
residential mortgage loans (the “ Mortgage Loans ”)
having the following characteristics as of June 1, 2007 (the
“ Cut-off Date
”):
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(a)
Aggregate Principal Amount of the Mortgage
Pools : Approximately $424,306,758
aggregate principal balance as of the Cut-off Date, subject to an
upward or downward variance of up to 5%, the precise aggregate
principal balance to be determined by the Company.
(b)
Original Terms to Maturity
: The original term to maturity of each Mortgage
Loan included in Mortgage Pools shall be 360 months.
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Section 2.
The Certificates : The Offered Certificates shall be issued as
follows:
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(a)
Classes : The
Offered Certificates shall be issued with the following Class
designations, interest rates and principal balances, subject in
the |
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aggregate to the variance referred to in
Section 1(a) and, as to any particular Class, to an upward or
downward variance of up to 5%: |
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Class |
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Class Principal
Balance |
|
Interest Rate |
|
Class Purchase
Price Percentage |
|
Required Ratings |
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|
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|
|
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|
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Fitch |
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S&P |
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| Class B-1 |
|
$ |
5,728,000.00 |
|
Variable
(1) |
|
99.708400000% |
|
AA |
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N/A |
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| Class B-2 |
|
$ |
2,545,000.00 |
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Variable
(1) |
|
98.551600000% |
|
A |
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N/A |
| |
| Class B-3 |
|
$ |
1,698,000.00 |
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Variable
(1) |
|
95.608000000% |
|
BBB |
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N/A |
| (1) |
The interest rates for these
classes of Certificates are variable and will be calculated as
described in the Prospectus. |
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(b) The Offered
Certificates shall have such other characteristics as described in
the related Prospectus. |
The Underwriter agrees, subject to the terms
and condit
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