MORTGAGE LOAN PURCHASE AGREEMENT

         THIS MORTGAGE LOAN PURCHASE AGREEMENT dated as of March 30, 2005 by and
between FIRST HORIZON HOME LOAN CORPORATION, a Kansas corporation (the
"Seller"), and FIRST HORIZON ASSET SECURITIES INC. (the "Purchaser").

         WHEREAS, the Seller owns certain Mortgage Loans (as hereinafter
defined) which Mortgage Loans are more particularly listed and described in
Schedule A attached hereto and made a part hereof.

         WHEREAS, the Seller and the Purchaser wish to set forth the terms
pursuant to which the Mortgage Loans, excluding the servicing rights thereto,
are to be sold by the Seller to the Purchaser.

         WHEREAS, the Seller will simultaneously transfer the servicing rights
for the Mortgage Loans to First Tennessee Mortgage Services, Inc. ("FTMSI")
pursuant to the Servicing Rights Transfer and Subservicing Agreement (as
hereinafter defined).

         WHEREAS, the Purchaser will engage FTMSI to service the Mortgage Loans
pursuant to the Servicing Agreement (as hereinafter defined).

         NOW, THEREFORE, in consideration of the foregoing, other good and
valuable consideration, and the mutual terms and covenants contained herein, the
parties hereto agree as follows:

ARTICLE I
                                   Definitions

         Agreement: This Mortgage Loan Purchase Agreement, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof.

         Business Day: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of Dallas, or the State of Texas
or New York City is located are authorized or obligated by law or executive
order to be closed.

         Closing Date:  March 30, 2005

         Code:  The Internal Revenue Code of 1986, including any successor or
amendatory provisions.

         Cooperative Corporation: The entity that holds title (fee or an
acceptable leasehold estate) to the real property and improvements constituting
the Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

         Coop Shares:  Shares issued by a Cooperative Corporation.

         Cooperative Loan:  Any Mortgage Loan secured by Coop Shares and a
Proprietary Lease.
<PAGE>

         Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, including the allocation of individual dwelling units
to the holders of the Coop Shares of the Cooperative Corporation.

         Cooperative Unit:  A single family dwelling located in a Cooperative
Property.

         Custodian: First Tennessee Bank National Association, and its
successors and assigns, as custodian under the Custodial Agreement dated as of
March 30, 2005 by and among The Bank of New York, as trustee, First Horizon Home
Loan Corporation, as master servicer, and the Custodian.

         Cut-Off Date:  March 1, 2005.

         Cut-off Date Principal  Balance:  As to any Mortgage Loan, the Stated P
rincipal Balance thereof as of the close of business on the Cut-off Date.

         Debt Service Reduction: With respect to any Mortgage Loan, a reduction
by a court of competent jurisdiction in a proceeding under the Bankruptcy Code
in the Scheduled Payment for such Mortgage Loan which became final and
non-appealable, except such a reduction resulting from a Deficient Valuation or
any reduction that results in a permanent forgiveness of principal.

         Deficient Valuation: With respect to any Mortgage Loan, a valuation by
a court of competent jurisdiction of the Mortgaged Property in an amount less
than the then-outstanding indebtedness under the Mortgage Loan, or any reduction
in the amount of principal to be paid in connection with any Scheduled Payment
that results in a permanent forgiveness of principal, which valuation or
reduction results from an order of such court which is final and non-appealable
in a proceeding under the United States Bankruptcy Reform Act of 1978, as
amended.

         Delay Delivery Mortgage Loans: The Mortgage Loans for which all or a
portion of a related Mortgage File is not delivered to the Trustee or to the
Custodian on its behalf on the Closing Date. The number of Delay Delivery
Mortgage Loans shall not exceed 25% of the aggregate number of Mortgage Loans as
of the Closing Date.

         Deleted Mortgage Loan:  As defined in Section 4.1(c) hereof.

         Determination Date: The earlier of (i) the third Business Day after the
15th day of each month, and (ii) the second Business Day prior to the 25th day
of each month, or if such 25th day is not a Business Day, the next succeeding
Business Day.

         GAAP: Generally accepted accounting principles as in effect from time
to time in the United States of America.

         Insurance Proceeds: Proceeds paid by an insurer pursuant to any
insurance policy, including all riders and endorsements thereto in effect,
including any replacement policy or policies, in each case other than any amount
included in such Insurance Proceeds in respect of expenses covered by such
insurance policy.

                                      -2-
<PAGE>

         Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of defaulted Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property.

         MERS: Mortgage Electronic  Registration Systems,  Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

         MERS Mortgage Loan:  Any Mortgage Loan registered with MERS on the MERS
System.

         MERS (R) System:  The system of recording transfers of mortgages
electronically maintained by MERS.

         MIN:  The Mortgage Identification Number for any MERS Mortgage Loan.

         MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee,
solely as nominee for the originator of such Mortgage Loan and its successors
and assigns.

         Mortgage: The mortgage, deed of trust or other instrument creating a
first lien on the property securing a Mortgage Note.

         Mortgage File: The mortgage documents listed in Section 3.1 pertaining
to a particular Mortgage Loan and any additional documents required to be added
to the Mortgage File pursuant to this Agreement.

         Mortgage Loans: The mortgage loans transferred, sold and conveyed by
the Seller to the Purchaser, pursuant to this Agreement.

         Mortgage Loan Purchase Price: With respect to any Mortgage Loan
required to be purchased by the Seller pursuant to Section 4.1(c) hereof, an
amount equal to the sum of (i) 100% of the unpaid principal balance of the
Mortgage Loan on the date of such purchase, and (ii) accrued interest thereon at
the applicable Mortgage Rate from the date through which interest was last paid
by the Mortgagor to the first day in the month in which the Mortgage Loan
Purchase Price is to be distributed to the Purchaser or its designees.

         Mortgage Note: The original executed note or other evidence of
indebtedness evidencing the indebtedness of a Mortgagor under a Mortgage Loan.

         Mortgaged Property: The underlying property securing a Mortgage Loan,
which, with respect to a Cooperative Loan, is the related Coop Shares and
Proprietary Lease.

         Mortgagor:  The obligor(s) on a Mortgage Note.

         Principal Prepayment: Any payment of principal by a Mortgagor on a
Mortgage Loan that is received in advance of its scheduled Due Date and is not
accompanied by an amount representing scheduled interest due on any date or
dates in any month or months subsequent to the month of prepayment.

                                      -3-
<PAGE>

         Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Coop Shares.

         Purchase Price:  $283,746,975.68

         Purchaser:  First  Horizon  Asset  Securities  Inc.,  in its capacity
as purchaser of the Mortgage  Loans from the Seller pursuant to this Agreement.

         Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the Cooperative Corporation and the originator of such
Mortgage Loan which establishes the rights of such originator in the Cooperative
Property.

         Scheduled Payment: The scheduled monthly payment on a Mortgage Loan due
on the first day of the month allocable to principal and/or interest on such
Mortgage Loan which, unless otherwise specified herein, shall give effect to any
related Debt Service Reduction and any Deficient Valuation that affects the
amount of the monthly payment due on such Mortgage Loan.

         Security Agreement:  The security agreement with respect to a
Cooperative Loan.

         Seller:  First  Horizon Home Loan  Corporation,  a Kansas  corporation,
and its  successors  and assigns,  in its capacity as seller of the Mortgage
Loans.

         Servicing Agreement: The servicing agreement, dated as of November 26,
2002 by and between First Horizon Asset Securities Inc. and its assigns, as
owner, and First Tennessee Mortgage Services, Inc., as servicer.

         Servicing Rights Transfer and Subservicing Agreement: The servicing
rights transfer and subservicing agreement, dated as of November 26, 2002 by and
between First Horizon Home Loan Corporation, as transferor and subservicer, and
First Tennessee Mortgage Services, Inc., as transferee and servicer.

         Stated Principal Balance: As to any Mortgage Loan, the unpaid principal
balance of such Mortgage Loan as specified in the amortization schedule at the
time relating thereto (before any adjustment to such amortization schedule by
reason of any moratorium or similar waiver or grace period) after giving effect
to any previous partial Principal Prepayments and Liquidation Proceeds allocable
to principal (other than with respect to any Liquidated Mortgage Loan) and to
the payment of principal due on such date and irrespective of any delinquency in
payment by the related Mortgagor.

         Substitute Mortgage Loan: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, (i) have a
Stated Principal Balance, after deduction of the principal portion of the
Scheduled Payment due in the month of substitution, not in excess of, and not
more than 10% less than the Stated Principal Balance of the Deleted Mortgage
Loan; (ii) have a Mortgage Rate not lower than the Mortgage Rate of the Deleted
Mortgage Loan; (iii) have a maximum mortgage rate not more than 1% per annum
higher or lower than the maximum mortgage rate of the Deleted Mortgage Loan;
(iv) have a minimum mortgage rate specified in its related Mortgage Note not
more than 1% per annum higher or lower than the minimum mortgage rate of the
Deleted Mortgage Loan; (v) have the same mortgage index, reset period and
periodic rate as the Deleted Mortgage Loan and a gross margin not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan (vi) be
accruing interest at a rate no lower than and not more than 1% per annum higher
than, that of the Deleted Mortgage Loan; (iv) have a loan-to-value ratio no
higher than that of the Deleted Mortgage Loan; (vii) have a remaining term to
maturity no greater than (and not more than one year less than that of) the
Deleted Mortgage Loan; (viii) not be a Cooperative Loan unless the Deleted
Mortgage Loan was a Cooperative Loan and (ix) comply with each representation
and warranty set forth in Schedule B hereto.

                                      -4-
<PAGE>

         Trustee: The Bank of New York and its successors and, if a successor
trustee is appointed hereunder, such successor.

                                   ARTICLE II
                                Purchase and Sale

         Section 2.1 Purchase Price. In consideration for the payment to it of
the Purchase Price on the Closing Date, pursuant to written instructions
delivered by the Seller to the Purchaser on the Closing Date, the Seller does
hereby transfer, sell and convey to the Purchaser on the Closing Date, but with
effect from the Cut-off Date, (i) all right, title and interest of the Seller in
the Mortgage Loans, excluding the servicing rights thereto, and all property
securing such Mortgage Loans, including all interest and principal received or
receivable by the Seller with respect to the Mortgage Loans on or after the
Cut-off Date and all interest and principal payments on the Mortgage Loans
received on or prior to the Cut-off Date in respect of installments of interest
and principal due thereafter, but not including payments of principal and
interest due and payable on the Mortgage Loans on or before the Cut-off Date,
and (ii) all proceeds from the foregoing. Items (i) and (ii) in the preceding
sentence are herein referred to collectively as "Mortgage Assets."

         Section 2.2 Timing. The sale of the Mortgage Assets hereunder shall
take place on the Closing Date.

                                  ARTICLE III
                             Conveyance and Delivery

         Section 3.1 Delivery of Mortgage Files. In connection with the transfer
and assignment set forth in Section 2.1 above, the Seller has delivered or
caused to be delivered to the Trustee or to the Custodian on its behalf (or, in
the case of the Delay Delivery Mortgage Loans, will deliver or cause to be
delivered to the Trustee or to the Custodian on its behalf within thirty (30)
days following the Closing Date) the following documents or instruments with
respect to each Mortgage Loan so assigned (collectively, the "Mortgage Files"):

         (a)  (1) the original Mortgage Note endorsed by manual or facsimile
              signature in blank in the following form: "Pay to the order of
              ________________, without recourse," with all intervening
              endorsements showing a complete chain of endorsement from the
              originator to the Person endorsing the Mortgage Note (each such
              endorsement being sufficient to transfer all right, title and
              interest of the party so endorsing, as noteholder or assignee
              thereof, in and to that Mortgage Note); or

                                      -5-
<PAGE>

              (2)  with respect to any Lost Mortgage Note, a lost note affidavit
              from the Seller stating that the original Mortgage Note was lost
              or destroyed, together with a copy of such Mortgage Note;

         (b)  except as provided below and for each Mortgage Loan that is not a
              MERS Mortgage Loan, the original recorded Mortgage or a copy of
              such Mortgage certified by the Seller as being a true and complete
              copy of the Mortgage, and in the case of each MERS Mortgage Loan,
              the original Mortgage, noting the presence of the MIN of the
              Mortgage Loans and either language indicating that the Mortgage
              Loan is a MOM Loan if the Mortgage Loan is a MOM Loan or if the
              Mortgage Loan was not a MOM Loan at origination, the original
              Mortgage and the assignment thereof to MERS, with evidence of
              recording indicated thereon, or a copy of the Mortgage certified
              by the public recording office in which such Mortgage has been
              recorded;

         (c)  a duly executed assignment of the Mortgage in blank (which may be
              included in a blanket assignment or assignments), together with,
              except as provided below, all interim recorded assignments of such
              mortgage (each such assignment, when duly and validly completed,
              to be in recordable form and sufficient to effect the assignment
              of and transfer to the assignee thereof, under the Mortgage to
              which the assignment relates); provided that, if the related
              Mortgage has not been returned from the applicable public
              recording office, such assignment of the Mortgage may exclude the
              information to be provided by the recording office;

         (d)  the original or copies of each assumption, modification, written
              assurance or substitution agreement, if any;

         (e)  either the original or duplicate original title policy (including
              all riders thereto) with respect to the related Mortgaged
              Property, if available, provided that the title policy (including
              all riders thereto) will be delivered as soon as it becomes
              available, and if the title policy is not available, and to the
              extent required pursuant to the second paragraph below or
              otherwise in connection with the rating of the Certificates, a
              written commitment or interim binder or preliminary report of the
              title issued by the title insurance or escrow company with respect
              to the Mortgaged Property, and

         (f)  in the case of a Cooperative Loan, the originals of the following
              documents or instruments:

              (1)  The Coop Shares, together with a stock power in blank;

              (2)  The executed Security Agreement;

              (3)  The executed Proprietary Lease;

                                      -6-
<PAGE>

              (4) The executed Recognition Agreement;

              (5) The executed UCC-1 financing statement with evidence of
         recording thereon which have been filed in all places required to
         perfect the Seller's interest in the Coop Shares and the Proprietary
         Lease; and

              (6) Executed UCC-3 financing statements or other appropriate UCC
         financing statements required by state law, evidencing a complete and
         unbroken line from the mortgagee to the Trustee with evidence of
         recording thereon (or in a form suitable for recordation).

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Seller cannot deliver (i) the original recorded Mortgage
or (ii) all interim recorded assignments satisfying the requirements of clause
(b) or (c) above, respectively, concurrently with the execution and delivery
hereof because such document or documents have not been returned from the
applicable public recording office, the Seller shall promptly deliver or cause
to be delivered to the Trustee or the Custodian on its behalf such original
Mortgage or such interim assignment, as the case may be, with evidence of
recording indicated thereon upon receipt thereof from the public recording
office, or a copy thereof, certified, if appropriate, by the relevant recording
office, but in no event shall any such delivery of the original Mortgage and
each such interim assignment or a copy thereof, certified, if appropriate, by
the relevant recording office, be made later than one year following the Closing
Date; provided, however, in the event the Seller is unable to deliver or cause
to be delivered by such date each Mortgage and each such interim assignment by
reason of the fact that any such documents have not been returned by the
appropriate recording office, or, in the case of each such interim assignment,
because the related Mortgage has not been returned by the appropriate recording
office, the Seller shall deliver or cause to be delivered such documents to the
Trustee or the Custodian on its behalf as promptly as possible upon receipt
thereof and, in any event, within 720 days following the Closing Date. The
Seller shall forward or cause to be forwarded to the Trustee or the Custodian on
its behalf (i) from time to time additional original documents evidencing an
assumption or modification of a Mortgage Loan and (ii) any other documents
required to be delivered by the Seller to the Trustee. In the event that the
original Mortgage is not delivered and in connection with the payment in full of
the related Mortgage Loan and the public recording office requires the
presentation of a "lost instruments affidavit and indemnity" or any equivalent
document, because only a copy of the Mortgage can be delivered with the
instrument of satisfaction or reconveyance, the Seller shall execute and deliver
or cause to be executed and delivered such a document to the public recording
office. In the case where a public recording office retains the original
recorded Mortgage or in the case where a Mortgage is lost after recordation in a
public recording office, the Seller shall deliver or cause to be delivered to
the Trustee or the Custodian on its behalf a copy of such Mortgage certified by
such public recording office to be a true and complete copy of the original
recorded Mortgage.

         In addition, in the event that in connection with any Mortgage Loan the
Seller cannot deliver or cause to be delivered the original or duplicate
original lender's title policy (together with all riders thereto), satisfying
the requirements of clause (v) above, concurrently with the execution and
delivery hereof because the related Mortgage has not been returned from the
applicable public recording office, the Seller shall promptly deliver or cause
to be delivered to the Trustee or the Custodian on its behalf such original or
duplicate original lender's title policy (together with all riders thereto) upon
receipt thereof from the applicable title insurer, but in no event shall any
such delivery of the original or duplicate original lender's title policy be
made later than one year following the Closing Date; provided, however, in the
event the Seller is unable to deliver or cause to be delivered by such date the
original or duplicate original lender's title policy (together with all riders
thereto) because the related Mortgage has not been returned by the appropriate
recording office, the Seller shall deliver or cause to be delivered such
documents to the Trustee or the Custodian on its behalf as promptly as possible
upon receipt thereof and, in any event, within 720 days following the Closing
Date.

                                      -7-
<PAGE>

         Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date, the Seller shall either (i) deliver or cause
to be delivered to the Trustee or the Custodian on its behalf the Mortgage File
as required pursuant to this Section 3.1 for each Delay Delivery Mortgage Loan
or (ii) (A) substitute or cause to be substituted a Substitute Mortgage Loan for
the Delay Delivery Mortgage Loan or (B) repurchase or cause to be repurchased
the Delay Delivery Mortgage Loan, which substitution or repurchase shall be
accomplished in the manner and subject to the conditions set forth in Section
4.1 (treating each Delay Delivery Mortgage Loan as a Deleted Mortgage Loan for
purposes of such Section 4.1), provided, however, that if the Seller fails to
deliver a Mortgage File for any Delay Delivery Mortgage Loan within the
thirty-day period provided in the prior sentence, the Seller shall use its best
reasonable efforts to effect or cause to be effected a substitution, rather than
a repurchase of, such Deleted Mortgage Loan and provided further that the cure
period provided for in Section 4.1 hereof shall not apply to the initial
delivery of the Mortgage File for such Delay Delivery Mortgage Loan, but rather
the Seller shall have five (5) Business Days to cure or cause to be cured such
failure to deliver.

                                   ARTICLE IV
                         Representations and Warranties

         Section 4.1 Representations and Warranties of the Seller.

         (a)  The Seller hereby represents and warrants to the Purchaser, as of
              the date of execution and delivery hereof, that:

              (1) The Seller is duly organized as a Kansas corporation and is
         validly existing and in good standing under the laws of the State of
         Kansas and is duly authorized and qualified to transact any and all
         business contemplated by this Agreement to be conducted by the Seller
         in any state in which a Mortgaged Property is located or is otherwise
         not required under applicable law to effect such qualification and, in
         any event, is in compliance with the doing business laws of any such
         state, to the extent necessary to ensure its ability to enforce each
         Mortgage Loan and to perform any of its other obligations under this
         Agreement in accordance with the terms thereof.

              (2) The Seller has the full corporate power and authority to sell
         each Mortgage Loan, and to execute, deliver and perform, and to enter
         into and consummate the transactions contemplated by this Agreement and
         has duly authorized by all necessary corporate action on the part of
         the Seller the execution, delivery and performance of this Agreement;
         and this Agreement, assuming the due authorization, execution and
         delivery thereof by the other parties thereto, constitutes a legal,
         valid and binding obligation of the Seller, enforceable against the
         Seller in accordance with its terms, except that (a) the enforceability
         thereof may be limited by bankruptcy, insolvency, moratorium,
         receivership and other similar laws relating to creditors' rights
         generally and (b) the remedy of specific performance and injunctive and
         other forms of equitable relief may be subject to equitable defenses
         and to the discretion of the court before which any proceeding therefor
         may be brought.

                                      -8-
<PAGE>

              (3) The execution and delivery of this Agreement by the Seller,
         the sale of the Mortgage Loans by the Seller under this Agreement, the
         consummation of any other of the transactions contemplated by this
         Agreement, and the fulfillment of or compliance with the terms thereof
         are in the ordinary course of business of the Seller and will not (a)
         result in a material breach of any term or provision of the charter or
         by-laws of the Seller or (b) materially conflict with, result in a
         material breach, violation or acceleration of, or result in a material
         default under, the terms of any other material agreement or instrument
         to which the Seller is a party or by which it may be bound, or (c)
         constitute a material violation of any statute, order or regulation
         applicable to the Seller of any court, regulatory body, administrative
         agency or governmental body having jurisdiction over the Seller; and
         the Seller is not in breach or violation of any material indenture or
         other material agreement or instrument, or in violation of any statute,
         order or regulation of any court, regulatory body, administrative
         agency or governmental body having jurisdiction over it which breach or
         violation may materially impair the Seller's ability to perform or meet
         any of its obligations under this Agreement.

              (4) No litigation is pending or, to the best of the Seller's
         knowledge, threatened against the Seller that would prohibit the
         execution or delivery of, or performance under, this Agreement by the
         Seller.

              (5) The Seller is a member of MERS in good standing, and will
         comply in all material respects with the rules and procedures of MERS
         in connection with the servicing of the MERS Mortgage Loans for as long
         as such Mortgage Loans are registered with MERS.

         (b)  The Seller hereby makes the representations and warranties set
              forth in Schedule B hereto to the Purchaser, as of the Closing
              Date, or if so specified therein, as of the Cut-off Date.

         (c)  Upon discovery by either of the parties hereto of a breach of a
              representation or warranty made pursuant to Schedule B hereto that
              materially and adversely affects the interests of the Purchaser in
              any Mortgage Loan, the party discovering such breach shall give
              prompt notice thereof to the other party. The Seller hereby
              covenants that within 90 days of the earlier of its discovery or
              its receipt of written notice from the Purchaser of a breach of
              any representation or warranty made pursuant to Schedule B hereto
              which materially and adversely affects the interests of the
              Purchaser in any Mortgage Loan, it shall cure such breach in all
              material respects, and if such breach is not so cured, shall, (i)
              if such 90-day period expires prior to the second anniversary of
              the Closing Date, remove such Mortgage Loan (a "Deleted Mortgage
              Loan") from the pools of mortgages listed on Schedule B hereto and
              substitute in its place a Substitute Mortgage Loan, in the manner
              and subject to the conditions set forth in this Section; or (ii)
              repurchase the affected Mortgage Loan or Mortgage Loans from the
              Purchaser at the Mortgage Loan Purchase Price in the manner set
              forth below. With respect to the representations and warranties
              described in this Section which are made to the best of the
              Seller's knowledge, if it is discovered by either the Seller or
              the Purchaser that the substance of such representation and
              warranty is inaccurate and such inaccuracy materially and
              adversely affects the value of the related Mortgage Loan or the
              interests of the Purchaser therein, notwithstanding the Seller's
              lack of knowledge with respect to the substance of such
              representation or warranty, such inaccuracy shall be deemed a
              breach of the applicable representation or warranty.

              With respect to any Substitute Mortgage Loan or Loans, the Seller
         shall deliver to the Trustee or to the Custodian on its behalf the
         Mortgage Note, the Mortgage, the related assignment of the Mortgage,
         and such other documents and agreements as are required by Section 3.1,
         with the Mortgage Note endorsed and the Mortgage assigned as required
         by Section 3.1. No substitution is permitted to be made in any calendar
         month after the Determination Date for such month. Scheduled Payments
         due with respect to Substitute Mortgage Loans in the month of
         substitution will be retained by the Seller. Upon such substitution,
         the Substitute Mortgage Loan or Loans shall be subject to the terms of
         this Agreement in all respects, and the Seller shall be deemed to have
         made with respect to such Substitute Mortgage Loan or Loans, as of the
         date of substitution, the representations and warranties made pursuant
         to Schedule B hereto with respect to such Mortgage Loan.

              It is understood and agreed that the obligation under this
         Agreement of the Seller to cure, repurchase or replace any Mortgage
         Loan as to which a breach has occurred and is continuing shall
         constitute the sole remedy against the Seller respecting such breach
         available to the Purchaser on its behalf.

         The representations and warranties contained in this Agreement shall
not be construed as a warranty or guaranty by the Seller as to the future
payments by any Mortgagor.

         It is understood and agreed that the representations and warranties set
forth in this Section 4.1 shall survive the sale of the Mortgage Loans to the
Purchaser hereunder.

                                   ARTICLE V
                                  Miscellaneous

         Section 5.1 Transfer Intended as Sale. It is the express intent of the
parties hereto that the conveyance of the Mortgage Loans by the Seller to the
Purchaser be, and be construed as, an absolute sale thereof in accordance with
GAAP and for regulatory purposes. It is, further, not the intention of the
parties that such conveyances be deemed a pledge thereof by the Seller to the
Purchaser. However, in the event that, notwithstanding the intent of the
parties, the Mortgage Loans are held to be the property of the Seller or the
Purchaser, respectively, or if for any other reason this Agreement is held or
deemed to create a security interest in such assets, then (i) this Agreement
shall be deemed to be a security agreement within the meaning of the Uniform
Commercial Code of the State of Texas and (ii) the conveyance of the Mortgage
Loans provided for in this Agreement shall be deemed to be an assignment and a
grant by the Seller to the Purchaser of a security interest in all of the
Mortgage Loans, whether now owned or hereafter acquired.

                                      -10-
<PAGE>

         The Seller and the Purchaser shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans, such
security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term
of the Agreement. The Seller and the Purchaser shall arrange for filing any
Uniform Commercial Code continuation statements in connection with any security
interest granted hereby.

         Section 5.2 Seller's Consent to Assignment. The Seller hereby
acknowledges the Purchaser's right to assign, transfer and convey all of the
Purchaser's rights under this Agreement to a third party and that the
representations and warranties made by the Seller to the Purchaser pursuant to
this Agreement will, in the case of such assignment, transfer and conveyance, be
for the benefit of such third party. The Seller hereby consents to such
assignment, transfer and conveyance.

         Section 5.3 Specific Performance. Either party or its assignees may
enforce specific performance of this Agreement.

         Section 5.4 Notices. All notices, demands and requests that may be
given or that are required to be given hereunder shall be sent by United States
certified mail, postage prepaid, return receipt requested, to the parties at
their respective addresses as follows:

                      If to
                      the Purchaser:      4000 Horizon Way
                                          Irving, Texas 75063
                                          Attn: Larry P. Cole

                      If to the Seller:   4000 Horizon Way
                                          Irving, Texas 75063
                                          Attn: Larry P. Cole

         Section 5.5 Choice of Law. This Agreement shall be construed in
accordance with and governed by the substantive laws of the State of Texas
applicable to agreements made and to be performed in the State of Texas and the
obligations, rights and remedies of the parties hereto shall be determined in
accordance with such laws.


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                                      -11-
<PAGE>

         IN WITNESS WHEREOF, the Purchaser and the Seller have caused their
names to be signed hereto by their respective officers thereunto duly authorized
as of the 30th day of March, 2005.

                                FIRST HORIZON HOME LOAN CORPORATION,
                                as Seller


                                By:
                                   ---------------------------------------------
                                       Terry McCoy
                                       Senior Vice President

                                FIRST HORIZON ASSET SECURITIES INC.,
                                as Purchaser


                                By:
                                   ---------------------------------------------
                                       Alfred Chang
                                       Vice President


<PAGE>

                                   SCHEDULE A

                              [BEGINS ON NEXT PAGE]

                      [Available Upon Request From Trustee]





<PAGE>

                                   SCHEDULE B

             Representations and Warranties as to the Mortgage Loans

         First Horizon Home Loan Corporation (the "Seller") hereby makes the
representations and warranties set forth in this Schedule B on which First
Horizon Asset Securities Inc. (the "Purchaser") relies in accepting the Mortgage
Loans. Such representations and warranties speak as of the execution and
delivery of the Mortgage Loan Purchase Agreement, dated as of March 30, 2005
(the "MLPA"), between First Horizon Home Loan Corporation, as seller, and the
Purchaser and as of the Closing Date, or if so specified herein, as of the
Cut-off Date or date of origination of the Mortgage Loans, but shall survive the
sale, transfer, and assignment of the Mortgage Loans to the Purchaser and any
subsequent sale, transfer and assignment by the Purchaser to a third party.
Capitalized terms used but not otherwise defined in this Schedule B shall have
the meanings ascribed thereto in the MLPA or the Pooling and Servicing
Agreement, dated as of March 1, 2005, between First Horizon Asset Securities
Inc., as depositor, First Horizon Home Loan Corporation, as master servicer, and
The Bank of New York, as trustee.

         (1)  The information set forth on Schedule A to the MLPA, with respect
              to each Mortgage Loan is true and correct in all material respects
              as of the Closing Date.

         (2)  Each Mortgage is a valid and enforceable first lien on the
              Mortgaged Property subject only to (a) the lien of nondelinquent
              current real property taxes and assessments and liens or interests
              arising under or as a result of any federal, state or local law,
              regulation or ordinance relating to hazardous wastes or hazardous
              substances and, if the related Mortgaged Property is a unit in a
              condominium project or Planned Unit Development, any lien for
              common charges permitted by statute or homeowner association fees,
              (b) covenants, conditions and restrictions, rights of way,
              easements and other matters of public record as of the date of
              recording of such Mortgage, such exceptions appearing of record
              being generally acceptable to mortgage lending institutions in the
              area wherein the related Mortgaged Property is located or
              specifically reflected in the appraisal made in connection with
              the origination of the related Mortgage Loan, and (c) other
              matters to which like properties are commonly subject which do not
              materially interfere with the benefits of the security intended to
              be provided by such Mortgage.

         (3)  Immediately prior to the assignment of the Mortgage Loans to the
              Purchaser, the Seller had good title to, and was the sole owner
              of, each Mortgage Loan free and clear of any pledge, lien,
              encumbrance or security interest and had full right and authority,
              subject to no interest or participation of, or agreement with, any
              other party, to sell and assign the same pursuant to this
              Agreement.

         (4)  As of the date of origination of each Mortgage Loan, there was no
              delinquent tax or assessment lien against the related Mortgaged
              Property.

                                      B-1
<PAGE>

         (5)  There is no valid offset, defense or counterclaim to any Mortgage
              Note or Mortgage, including the obligation of the Mortgagor to pay
              the unpaid principal of or interest on such Mortgage Note.

         (6)  There are no mechanics' liens or claims for work, labor or
              material affecting any Mortgaged Property which are or may be a
              lien prior to, or equal with, the lien of such Mortgage, except
              those which are insured against by the title insurance policy
              referred to in item (11) below.

         (7)  To the best of the Seller's knowledge, no Mortgaged Property has
              been materially damaged by water, fire, earthquake, windstorm,
              flood, tornado or similar casualty (excluding casualty from the
              presence of hazardous wastes or hazardous substances, as to which
              the Seller makes no representation) so as to affect adversely the
              value of the related Mortgaged Property as security for such
              Mortgage Loan. With respect to the representations and warranties
              contained within this item (7) that are made to the knowledge or
              the best knowledge of the Seller or as to which the Seller has no
              knowledge, if it is discovered that the substance of any such
              representation and warranty is inaccurate and the inaccuracy
              materially and adversely affects the value of the related Mortgage
              Loan, or the interest therein of the Purchaser, then
              notwithstanding the Seller's lack of knowledge with respect to the
              substance of such representation and warranty being inaccurate at
              the time the representation and warranty was made, such inaccuracy
              shall be deemed a breach of the applicable representation and
              warranty and the Seller shall take such action described in
              Section 4.1(c) of this Agreement in respect of such Mortgage Loan.

         (8)  Each Mortgage Loan at origination complied in all material
              respects with applicable local, state and federal laws, including,
              without limitation, usury, equal credit opportunity, real estate
              settlement procedures, truth-in-lending and disclosure laws and
              specifically applicable predatory and abusive lending laws, or any
              noncompliance does not have a material adverse effect on the value
              of the related Mortgage Loan.

         (9)  No Mortgage Loan is a "high cost loan" as defined by the specific
              applicable predatory and abusive lending laws.

         (10) Except as reflected in a written document contained in the related
              Mortgage File, the Seller has not modified the Mortgage in any
              material respect; satisfied, cancelled or subordinated such
              Mortgage in whole or in part; released the related Mortgaged
              Property in whole or in part from the lien of such Mortgage; or
              executed any instrument of release, cancellation, modification or
              satisfaction with respect thereto.

         (11) A lender's policy of title insurance together with a condominium
              endorsement and extended coverage endorsement, if applicable, in
              an amount at least equal to the Cut-off Date Principal Balance of
              each such Mortgage Loan or a commitment (binder) to issue the same
              was effective on the date of the origination of each Mortgage
              Loan, each such policy is valid and remains in full force and
              effect.

                                      B-2
<PAGE>

         (12) To the best of the Seller's knowledge, all of the improvements
              which were included for the purpose of determining the appraised
              value of the Mortgaged Property lie wholly within the boundaries
              and building restriction lines of such property, and no
              improvements on adjoining properties encroach upon the Mortgaged
              Property, unless such failure to be wholly within such boundaries
              and restriction lines or such encroachment, as the case may be,
              does not have a material effect on the value of such Mortgaged
              Property.

         (13) To the best of the Seller's knowledge, as of the date of
              origination of each Mortgage Loan, no improvement located on or
              being part of the Mortgaged Property is in violation of any
              applicable zoning law or regulation unless such violation would
              not have a material adverse effect on the value of the related
              Mortgaged Property. To the best of the Seller's knowledge, all
              inspections, licenses and certificates required to be made or
              issued with respect to all occupied portions of the Mortgaged
              Property and, with respect to the use and occupancy of the same,
              including but not limited to certificates of occupancy and fire
              underwriting certificates, have been made or obtained from the
              appropriate authorities, unless the lack thereof would not have a
              material adverse effect on the value of such Mortgaged Property.

         (14) The Mortgage Note and the related Mortgage are genuine, and each
              is the legal, valid and binding obligation of the maker thereof,
              enforceable in accordance with its terms and under applicable law.

         (15) The proceeds of the Mortgage Loan have been fully disbursed and
              there is no requirement for future advances thereunder.

         (16) The related Mortgage contains customary and enforceable provisions
              which render the rights and remedies of the holder thereof
              adequate for the realization against the Mortgaged Property of the
              benefits of the security, including, (i) in the case of a Mortgage
              designated as a deed of trust, by trustee's sale, and (ii)
              otherwise by judicial foreclosure.

         (17) With respect to each Mortgage constituting a deed of trust, a
              trustee, duly qualified under applicable law to serve as such, has
              been properly designated and currently so serves and is named in
              such Mortgage, and no fees or expenses are or will become payable
              by the holder of the Mortgage to the trustee under the deed of
              trust, except in connection with a trustee's sale after default by
              the Mortgagor.

         (18) As of the Closing Date, the improvements upon each Mortgaged
              Property are covered by a valid and existing hazard insurance
              policy with a generally acceptable carrier that provides for fire
              and extended coverage and coverage for such other hazards as are
              customarily required by institutional single family mortgage
              lenders in the area where the Mortgaged Property is located, and
              the Seller has received no notice that any premiums due and
              payable thereon have not been paid; the Mortgage obligates the
              Mortgagor thereunder to maintain all such insurance including
              flood insurance at the Mortgagor's cost and expense. Anything to
              the contrary in this item (18) notwithstanding, no breach of this
              item (18) shall be deemed to give rise to any obligation of the
              Seller to repurchase or substitute for such affected Mortgage Loan
              or Loans so long as the Seller maintains a blanket policy.

                                      B-3
<PAGE>

         (19) If at the time of origination of each Mortgage Loan, related the
              Mortgaged Property was in an area then identified in the Federal
              Register by the Federal Emergency Management Agency as having
              special flood hazards, a flood insurance policy in a form meeting
              the then-current requirements of the Flood Insurance
              Administration is in effect with respect to such Mortgaged
              Property with a generally acceptable carrier.

         (20) To the best of the Seller's knowledge, there is no proceeding
              pending or threatened for the total or partial condemnation of any
              Mortgaged Property, nor is such a proceeding currently occurring.

         (21) To best of the Seller's knowledge, there is no material event
              which, with the passage of time or with notice and the expiration
              of any grace or cure period, would constitute a material
              non-monetary default, breach, violation or event of acceleration
              under the Mortgage or the related Mortgage Note; and the Seller
              has not waived any material non-monetary default, breach,
              violation or event of acceleration.

         (22) Any leasehold estate securing a Mortgage Loan has a stated term at
              least as long as the term of the related Mortgage Loan.

         (23) Each Mortgage Loan was selected from among the outstanding
              fixed-rate one- to four-family mortgage loans in the Seller's
              portfolio at the Closing Date as to which the representations and
              warranties made with respect to the Mortgage Loans set forth in
              this Schedule B can be made. No such selection was made in a
              manner intended to adversely affect the interests of the
              Certificateholders.

         (24) The Mortgage Loans provide for the full amortization of the amount
              financed over a series of monthly payments.

         (25) At origination, substantially all of the Mortgage Loans in Pool I,
              Pool II and Pool III had stated terms to maturity of 30 years, 15
              years and 30 years, respectively.

         (26) Scheduled monthly payments made by the Mortgagors on the Mortgage
              Loans either earlier or later than their Due Dates will not affect
              the amortization schedule or the relative application of the
              payments to principal and interest.

         (27) The Mortgage Loans may be prepaid at any time by the related
              Mortgagors without penalty.

                                      B-4
<PAGE>

         (28) Substantially all of the Mortgage Loans are jumbo Mortgage Loans
              that have Stated Principal Balances at origination that exceed the
              then applicable limitations for purchase by Fannie Mae and Freddie
              Mac.

         (29) Each Mortgage Loan in Pool I, Pool II and Pool III was originated
              on or after August 20, 2004, October 14, 2004 and August 27, 2001,
              respectively.

         (30) The latest stated maturity date of any Mortgage Loan in Pool I is
              April 1, 2035, and the earliest stated maturity date of any
              Mortgage Loan in Pool I is August 1, 2029. The latest stated
              maturity date of any Mortgage Loan in Pool II is April 1, 2020,
              and the earliest stated maturity date of any Mortgage Loan in Pool
              II is November 1, 2019. The latest stated maturity date of any
              Mortgage Loan in Pool III is September 1, 2032, and the earliest
              stated maturity date of any Mortgage Loan in Pool III is September
              1, 2031.

         (31) No Mortgage Loan was delinquent more than 30 days as of the
              Cut-off Date.

         (32) No Mortgage Loan had a Loan-to-Value Ratio at origination of more
              than 95%. Generally, each Mortgage Loan with a Loan-to-Value Ratio
              at origination of greater than 80% is covered by a Primary
              Insurance Policy issued by a mortgage insurance company that is
              acceptable to Fannie Mae or Freddie Mac.

         (33) Other than the Residual Certificates, each Mortgage Loan
              constitutes a "qualified mortgage" within the meaning of Section
              860G(a)(3) of the Code.

         (34) No Mortgage Loan is a "high cost loan" as defined by the specific
              applicable predatory and abusive lending laws. In addition, no
              Mortgage Loan is a "High Cost Loan" or a "Covered Loan", as
              applicable (as such terms are defined in the then current Standard
              & Poor's LEVELS(R) Glossary which is now Version 5.6 Revised,
              Appendix E) and no Mortgage Loan originated on or after October 1,
              2002 through March 6, 2003 is governed by the Georgia Fair Lending
              Act.

         (35) Appraisal form 1004 or form 2055 with an interior inspection for
              first lien mortgage loans has been obtained for all related
              mortgaged properties, other than condominiums, investment
              properties, two to four unit properties and exempt properties, for
              which appraisal form 1004 or form 2055 has not been obtained.

              Appraisal form 704, 2065 or 2055 with an exterior only inspection
              for junior lien mortgages combined with first lien mortgages
              (including home equity lines of credit) has been obtained for all
              related mortgaged properties, other than condominiums, investment
              properties, two to four unit properties and exempt properties, for
              which appraisal form 1004 or form 2055 has not been obtained.
              Appraisal form 704, 2065 or 2055 with an exterior only inspection
              for all other junior lien mortgages has been obtained for all
              related mortgaged properties, other than those related mortgaged
              properties that qualify for an Automated Valuation Model.

                                      B-5