Fitch rates First Horizon Alternative Mortgage Securities Trust (FHAMS) $267,205,401 mortgage pass-through certificates, series 2004-FA2, classes I-A-1, I-A-PO, I-A-R, II-A-1, II-A-PO, III-A-1, and III-A-PO certificates 'AAA'.

The 'AAA' rating on the senior certificates reflects the 5.25% subordination provided by the class B certificates (which are not rated by Fitch). Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and the servicing capabilities of First Horizon Home Loan Corporation, currently rated 'RPS2-' for Alt A mortgage products by Fitch Ratings.

Substantially all of the mortgage loans were underwritten to First Horizon's 'Super Expanded Underwriting Guidelines'. These guidelines are less stringent than First Horizon's general underwriting guidelines and could include limited documentation, higher loan-to-value (LTV) ratios and lower FICO scores. Mortgage loans underwritten to the 'Super Expanded Underwriting Guidelines' could experience higher rates of default and losses than loans underwritten using First Horizon's general underwriting guidelines.

As of the cut-off date, Nov. 1, 2004, the trust will consist of three pool groups. The certificates whose class designation begins with 'I', 'II', and 'III' correspond to pools 'I', 'II', and 'III', respectively.

Group I consists of conventional, fully amortizing, 30 year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties, with an aggregate principal balance of $190,049,276. The average principal balance of the loans in this pool is approximately $151,434. The mortgage pool has a weighted average original loan-to-value ratio (OLTV) of 74.13%. Rate/Term and Cash-out refinance loans account for 13.03% and 29.08% of the pool, respectively. The states that represent the largest portion of the mortgage loans are California (12.28%), Arizona (7.64%), Maryland (6.74%), Idaho (5.57%), and Virginia (5.46%). All other states represent less than 5% of the Group I pool balance as of the cut-off date.

Group II consists of conventional, fully amortizing, 15 year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties mortgage loans, with an aggregate principal balance of $22,003,872. The average principal balance of the loans in this pool is approximately $153,873. The mortgage pool has a weighted average OLTV of 63.21%. Rate/Term and Cash-out refinance loans account for 18.46% and 48.03% of the pool, respectively. The states that represent the largest portion of the mortgage loans are California (14.71%), Tennessee (11.26%), Virginia (8.32%), Maryland (6.40%), and Georgia (5.08%). All other states represent less than 5% of the Group II pool balance as of the cut-off date.

Group III consists of conventional, fully amortizing, 30 year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties, with an aggregate principal balance of $69,958,694. The average principal balance of the loans in this pool is approximately $542,315. The mortgage pool has a weighted average OLTV of 73.34%. Rate/Term and Cash-out refinance loans account for 14.36% and 30.94% of the pool, respectively. The states that represent the largest portion of the mortgage loans are California (30.65%), North Carolina (9.96%), and Virginia (9.44%). All other states represent less than 5% of the Group III pool balance as of the cut-off date.

None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation', available on the Fitch Ratings web site at www.fitchratings.com.

The trust, First Horizon Alternative Mortgage Securities Trust 2004-FA2, was created for the sole purpose of issuing the certificates. For federal income tax purposes, an election will be held to treat the trust as multiple real estate mortgage investment conduits (REMICs). The Bank of New York will act as trustee.