FIRST HORIZON ASSET SECURITIES INC. MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2007-4 TERMS AGREEMENT (to Underwriting Agreement, dated March 24, 2006 among the Company, First Horizon Home Loan Corporation and the Underwriter)

EX-1.2

EXECUTION

FIRST HORIZON ASSET SECURITIES INC.

MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 2007-4

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.	Xxxxxxxxx, Xxxxx Xxxxxxxx
0000 Horizon Way	June 27, 2007
Xxxxxx, Xxxxx 00000

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 2007-4 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 2007-4 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 2007-4 Certificates shall evidence the entire beneficial ownership interest in two mortgage pools (collectively, the “Mortgage Pools”) of conventional, fixed 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”):

(a) Aggregate Principal Amount of the Mortgage Pools: Approximately $346,019,897 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 Pool I shall be between 240 and 360 months. The original term to maturity of each Mortgage Loan included in Pool II shall be between 120 and 180 months.

Section 2. The Certificates: The Offered Certificates shall be issued as follows:

(a) Classes: The Offered Certificates shall be issued with the following Class designations, interest rates and principal balances, subject in the 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%:

	Class Principal			Class Purchase		Required Ratings
Class	Balance		Interest Rate	Price Percentage
					Fitch	S&P	Moody’s
I-A-1	$	22,522,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-2	$	673,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-3	$	31,558,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-4	$	4,704,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-5	$	62,422,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-6	$	33,163,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-7	$	24,424,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-8	$	23,685,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-9	$	6,262,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-10	$	98,321,000	Floating Rate⁽¹⁾	99.781250000%	AAA	AAA	Aaa

I-A-11	$	10,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-12	$	10,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-13	$	2,856,000	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-14	$	7,136,341	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-15	$	3,894,900	Fixed Rate	99.781250000%	AAA	AAA	N/A

I-A-16	$	98,321,000	Floating Rate⁽¹⁾	0%	AAA	AAA	Aaa

I-A-17	$	98,321,000	Inverse Floating Rate⁽¹⁾	0%	AAA	AAA	N/A

I-A-R	$	100	Fixed Rate	99.781250000%	AAA	AAA	N/A

II-A-1	$	18,958,000	Fixed Rate	99.187500000%	AAA	AAA	N/A

II-A-2	$	1,449,000	Fixed Rate	99.187500000%	AAA	AAA	N/A

B1	$	5,363,000	Variable Rate⁽²⁾	98.317400000%	AA	N/A	N/A

B2	$	1,903,000	Variable Rate⁽²⁾	96.904100000%	A	N/A	N/A

B3	$	1,038,000	Variable Rate⁽²⁾	91.468800000%	BBB	N/A	N/A

	(1)	The interest rates for these classes of Certificates are floating and will be calculated as described in the Prospectus Supplement.

	(2)	The interest rates for these classes of Certificates are variable and will be calculated as described in the Prospectus Supplement.

		(b) The Offered Certificates shall have such other characteristics as described in the related Prospectus.

The Underwriter agrees, subject to the terms and conditions contained herein and in the Underwriting Agreement, to purchase the principal balances of the Classes of Certificates specified opposite its name below:

Series 2007-4
Designation	Banc of America Securities LLC
Class I-A-1	$	22,522,000
Class I-A-2	$	673,000
Class I-A-3	$	31,558,000
Class I-A-4	$	4,704,000
Class I-A-5	$	62,422,000
Class I-A-6	$	33,163,000
Class I-A-7	$	24,424,000
Class I-A-8	$	23,685,000
Class I-A-9	$	6,262,000
Class I-A-10	$	98,321,000
Class I-A-11	$	10,000
Class I-A-12	$	10,000
Class I-A-13	$	2,856,000
Class I-A-14	$	7,136,341
Class I-A-15	$	3,894,900
Class I-A-16	$	98,321,000
Class I-A-17	$	98,321,000
Class I-A-PO	$	1,073,137
Class I-A-R	$	100
Class II-A-1	$	18,958,000
Class II-A-2	$	1,449,000
Class B1	$	5,363,000
Class B2	$	1,903,000
Class B3	$	1,038,000

Section 3. Purchase Price: The Purchase Price for each Class of the Offered Certificates shall be the Class Purchase Price Percentage therefor (as set forth in Section 2(a) above) of the initial Class Principal Balance thereof plus accrued interest at the

applicable per annum Pass-Through Rate set forth in 2(a) above from and including the Cut-off Date up to, but not including, June 29, 2007 (the “Closing Date”).

Section 4. Required Ratings: The Offered Certificates shall have received at least the Required Ratings from Fitch, Inc. (“Fitch”), Standard & Poor’s, a division of The XxXxxx-Xxxx Companies, Inc. (“S&P”) and Xxxxx’x Investors Service, Inc. (“Moody’s”) set forth in the table in Section 2(a).

Section 5. Tax Treatment: One or more elections will be made to treat the assets of the Trust Fund as a REMIC.

Section 6. Acknowledgment of Merger: The Underwriter hereby acknowledges that, effective May 31, 2007, First Horizon Home Loan Corporation merged with and into First Tennessee Bank National Association. All references in the Underwriting Agreement to First Horizon Home Loan Corporation shall be deemed to refer to First Horizon Home Loans, a division of First Tennessee Bank National Association, as successor by merger to First Horizon Home Loan Corporation.

If the foregoing is in accordance with your understanding of our agreement, please sign and return to the undersigned a counterpart hereof, whereupon this letter and your acceptance shall represent a binding agreement among the Underwriter, First Horizon Home Loans, a division of First Tennessee Bank National Association, and the Company

	Very truly yours,


	BANC OF AMERICA SECURITIES LLC


	By:
	Name:
	Title:

The foregoing Agreement is
hereby confirmed and accepted
as of the date first above written.

FIRST HORIZON ASSET SECURITIES INC.

By:
	Name: Xxxxxx Xxxxx
	Title: Vice President

FIRST HORIZON HOME LOANS, a division of
First Tennessee Bank National Association

By:
	Name: Xxxxx X. XxXxx
	Title: Executive Vice President

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FIRST HORIZON ASSET SECURITIES INC. MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2007-4 TERMS AGREEMENT (to Underwriting Agreement, dated March 24, 2006 among the Company, First Horizon Home Loan Corporation and the Underwriter)

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