----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

**(Mark      one)**

|   |   |                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|
| þ |   | **ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|   |   |                                                                                                                                  |
|   |   | **For              the fiscal              year ended December 31, 2007**                                                             |

**or**

|   |   |                                                                                                                                                                                                                                                                                                                                |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o      |   | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934**                                                                                                                                                                                           |
|   |   | **For              the              transition period from                                   to                     ** |

**Commission      file number **
**333-137018-09**

**FIRST      HORIZON MORTGAGE PASS-THROUGH TRUST 2007-AR1**

**FIRST      HORIZON ASSET SECURITIES INC.**

**FIRST      HORIZON HOME LOAN CORPORATION**

|                                                                                                                      |   |                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|
| **Delaware**(State                or other jurisdiction of incorporation or organization of                the Depositor) |   | **75-2808384**(I.R.S.                Employer Identification No.of                the Depositor) |
|                                                                                                                      |   |                                                                                             |
| **4000                Horizon Way**                                                                                       |   |                                                                                             |
| **Irving,                TX**                                                                                             |   | **75063**                                                                                        |
| (Address                of principal executive offices of the Depositor)                                                  |   | (Zip                Code)                                                                        |

441-4000

|                                   |   |                                     |
|----------------------------------------|--------|------------------------------------------|
|                                   |   | **Name                of each exchange** |
| **Title                of each class** |   | **on                which registered**   |
|                         |   |                           |
|                                   |   |                                     |
| None                                   |   | Not                Applicable            |

----

----

----

**Securities      registered pursuant to Section 12(g) of the Act:      None.**

**Indicate      by check mark if the registrant is a well-known seasoned issuer, as defined      in      Rule 405 of the Securities Act.**

**Indicate      by check mark if the registrant is not required to file reports pursuant to      Section 13 or**
**Section      15(d)**
**of      the Act.**

           **Indicate      by check mark whether the registrant: (1) has filed all reports required to      be filed by Section 13 or** **15(d)** **of      the Securities Exchange Act of 1934 during the preceding 12 months (or for      such shorter period that the registrant was required to file such reports),      and      (2) has been subject to such filing requirements for the past      90 days.**

**Indicate      by check mark if disclosure of delinquent filers pursuant to Item 405 of      Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not      be contained, to the best of registrant’s knowledge, in definitive proxy or      information statements incorporated by reference in Part III of this      Form 10-K or any amendment to this**
**Form      10-K**
**.**

**Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting company.      See      the definitions of “large accelerated filer,” “accelerated filer” and “smaller      reporting company” in Rule 12b-2 of the Exchange Act. **

| Large                accelerated filer o                                        | Accelerated                filer o         |
|----------------------------------------------------------------------------------------------------------|--------------------------------------------|
| Non-accelerated                filer þ                (Do not check if a smaller reporting company) | Smaller                reporting company o |

**Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Act).**

**State      the aggregate market value of the voting and non-voting common equity held      by      non-affiliates computed by reference to the price at which the common equity      was      last sold, or the average bid and asked price of such common equity, as of      the      last business day of the registrant’s most recently completed second fiscal      quarter.**

**Documents      incorporated by Reference.**

----

**TABLE      OF CONTENTS**

| PART                      I                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      | Item 1B.                      Unresolved Staff Comments |
|                                                                                                                                                      | Item 1112(b)                      of Regulation AB. Significant Obligors of Pool Assets (Financial                      Information) |
|                                                                                                                                                      | Item 1114(b)(2)                      of Regulation AB. Credit Enhancement and Other Support, Except for                      Certain Derivatives Instruments (Financial                      Information) |
|                                                                                                                                                      | Item                      1115(b) of Regulation AB. Certain Derivatives Instruments (Financial                      Information) |
|                                                                                                                                                      | Item 1117                      of Regulation AB. Legal Proceedings |
| PART                      II                                                                                                                              |
|                                                                                                                                                      | Item 9B.                      Other Information |
| PART                      III                                                                                                                             |
|                                                                                                                                                      | Item 1119                      of Regulation AB. Affiliations and Certain Relationships and Related                      Transactions |
|                                                                                                                                                      | Item 1122                      of Regulation AB. Compliance with Applicable Servicing                      Criteria |
|                                                                                                                                                      | Item 1123                      of Regulation AB. Servicer Compliance                      Statement |
| PART                      IV                                                                                                                              |
|                                                                                                                                                      | Item 15.                      Exhibits, Financial Statement Schedules |
|                                                                                                                                                      |
| 4.1                      - Pooling and Servicing Agreement                                                                                                |
| 10.1                      - Mortgage Loan Purchase Agreement                                                                                              |
| 31.1                      - Rule 13a-14(a)/15d-14(a) Certification (Section 302                      Certification)                             |
| 33.1                      - Report on Assessment of Compliance with Servicing Criteria                      (FHHL and                      FTMSI)         |
| 33.2                      - Report on Assessment of Compliance with Servicing Criteria                      (BNY)                                         |
| 34.1                      - Report of Independent Registered Public Accounting Firm (KPMG                      for FHHL                      and FTMSI)   |
| 34.2                      - Report of Independent Registered Public Accounting Firm (KPMG                      for                      BNY)              |
| 35.1                      - Servicer Compliance Statement of FHHL and FTBNA, as successor                      by merger                      to FTMSI    |
| 99.1                      - Schedule of Year-to-Date Principal and Interest Distributions                      to                      Certificateholders |

----

**PART      I**

**The      following Items have been omitted in accordance with General Instruction J      to      Form 10-K:**

Item 1.      Business

Item 1A.      Risk Factors

Item 2.      Properties

Item 3.      Legal Proceedings

Item 4.      Submission of Matters to a Vote of Security Holders

**Item 1B.      Unresolved Staff Comments**

**Substitute      information provided in accordance with General Instruction J to Form      10-K:**

**Item 1112(b)      of Regulation AB. Significant Obligors of Pool Assets (Financial      Information).**

**Item 1114(b)(2)      of Regulation AB. Credit Enhancement and Other Support, Except for Certain      Derivatives Instruments (Financial Information).**

**Item 1115(b)      of Regulation AB. Certain Derivatives Instruments (Financial      Information).**

**Item 1117      of Regulation AB. Legal Proceedings.**

----

**PART      II**

**The      following Items have been omitted in accordance with General Instruction J      to      Form 10-K:**

**Item 9B.      Other Information.**

**PART      III**

**The      following Items have been omitted in accordance with General Instruction J      to      Form 10-K**

**Substitute      information provided in accordance with General Instruction J to      Form 10-K:**

**Item 1119      of Regulation AB. Affiliations and Certain Relationships and Related      Transactions.**

**Item 1122      of Regulation AB. Compliance with Applicable Servicing      Criteria.**

**Item 1123      of Regulation AB. Servicer Compliance Statement.**

----

**PART      IV**

**Item 15.      Exhibits, Financial Statement Schedules.**

| (a) | List                  of Documents Filed as Part of this                  Report |
|-----|----------------------------------------------------------------------------------|

|   | (1) | Not                  Applicable. |
|--------|-----|----------------------------------|

|   | (2) | Not                  Applicable. |
|--------|-----|----------------------------------|

|   | (3) | See                  Item 15 (b), below. |
|--------|-----|-----------------------------------------------|

| (b) | Exhibits                  Required by Item 601 of                  Regulation S-K |
|-----|---------------------------------------------------------------------------------------------|

***EXHIBIT        DESCRIPTION***

| 4.1    |   | Pooling                  and Servicing Agreement dated March 1, 2007 by and among FHASI,                  as                  depositor, First Horizon Home Loan Corporation, as master servicer,                  and                  The Bank of New York, as trustee (incorporated by reference to                  Exhibit 4.1                  of the issuing entity’s Current Report on Form 8-K filed on April 5,                  2007) |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.1   |   | Mortgage                  Loan Purchase Agreement dated March 30, 2007 by and between First                  Horizon                  Home Loan Corporation, as seller, and FHASI, as purchaser (incorporated                  by                  reference to Exhibit 10.1 of the issuing entity’s Current Report on Form                  8-K filed on April 5, 2007)                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 31.1   |   | Rule 13a-14(a)/15d-14(a)                  Certification (Section 302 Certification).                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 33.1   |   | Report                  on Assessment of Compliance with Servicing Criteria concerning                  servicing                  activities of FHHL and FTMSI for the year ended December 31,                  2007.                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 33.2   |   | Report                  on Assessment of Compliance with Servicing Criteria concerning                  servicing                  activities of The Bank of New York for the year ended December                  31,                  2007.                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 34.1   |   | Report                  of Independent Registered Public Accounting Firm concerning servicing                  activities of FHHL and FTMSI for the year ended December 31,                  2007.                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 34.2   |   | Report                  of Independent Registered Public Accounting Firm concerning servicing                  activities of The Bank of New York for the year ended December                  31,                  2007.                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 35.1   |   | Servicer                  Compliance Statement of FHHL and FTBNA, as successor by merger                  to FTMSI,                  for the year ended December 31, 2007.                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 99.1   |   | Schedule                  of Year-to-Date Principal and Interest Distributions to                  Certificateholders.                                                                                                                                                                                                                                                                                                                                 |

| (c) | Omitted. |
|-----|----------|

----

**SIGNATURES**

|                                 |   |   |   |                                                                                              |   |                                                                         |   |   |
|--------------------------------------|--------|--------|--------|---------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|--------|
|                                 |   |   |   | First                Horizon Mortgage Pass-Through Trust 2007-AR1 (Issuing                Entity) |
|                                 |   |   |   |                                                                                              |   |                                                                         |
|                                 |   |   |   | By:                First Horizon Asset Securities Inc., as Depositor                              |
|                                 |   |   |   |                                                                                              |   |                                                                         |
|                                 |   |   |   |                                                                                              |   |                                                                         |   |   |
| Dated:                March 28, 2008 |   |   |   | By:                                                                                               |   | /s/                Terry L. McCoy                                            |   |   |
|                                 |   |   |   |                                                                                              |   | Terry                L. McCoy                                                |   |   |
|                                 |   |   |   |                                                                                              |   | Executive                Vice President                                      |   |   |
|                                 |   |   |   |                                                                                              |   | (Senior                Officer of the Depositor in charge of Securitization) |   |   |
|                                 |   |   |   |                                                                                              |   |                                                                         |   |   |

----

**EXHIBIT      INDEX**

| **EXHIBIT** | **DESCRIPTION** |
|-------------|-----------------|

| 4.1 | Pooling                and Servicing Agreement dated March 1, 2007 by and among FHASI, as                depositor, First Horizon Home Loan Corporation, as master servicer,                and                The Bank of New York, as trustee (incorporated by reference to Exhibit                4.1                of the issuing entity’s Current Report on Form 8-K filed on April 5,                2007) |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.1 | Mortgage                Loan Purchase Agreement dated March 30, 2007 by and between First                Horizon                Home Loan Corporation, as seller, and FHASI, as purchaser (incorporated                by                reference to Exhibit 10.1 of the issuing entity’s Current Report on Form                8-K filed on April 5, 2007) |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Rule 13a-14(a)/15d-14(a)                Certification (Section 302                Certification). |
|------|-------------------------------------------------------------------------------------------------------------|

| 33.1 | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of FHHL and FTMSI for the year ended December 31,                2007. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.2 | Report                on Assessment of Compliance with Servicing Criteria concerning servicing                activities of The Bank of New York for the year ended December 31,                2007. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.1 | Report                of Independent Registered Public Accounting Firm Report concerning                servicing activities of FHHL and FTMSI for the year ended December                31,                2007. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.2 | Report                of Independent Registered Public Accounting Firm concerning servicing                activities of The Bank of New York for the year ended December 31,                2007. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.1 | Servicer                Compliance Statement of FHHL and FTBNA, as successor by merger to                FTMSI,                for the year ended December 31,                2007. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.1 | Schedule                of Year-to-Date Principal and Interest Distributions to                Certificateholders |
|------|-------------------------------------------------------------------------------------------------------------------|

----