Item 1. Business.
Omitted.
Item 2.
Item 2. Properties.
Not applicable.
Item 3.
Item 3. Legal Proceedings.
There were no material pending legal proceedings relating to the Trust Fund to which any of the Trust Fund, the Trustee, the Master Servicer or the Company was a party or of which any of their respective properties was the subject during the fiscal year covered by this Report, nor is the Company aware of any such proceedings contemplated by governmental authorities.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted to a vote of Certificateholders, and no Certificateholder consent was solicited during the fiscal year covered by this report.
PART II
Item 5.
Item 5. Market for registrants Common Equity and Related Stockholder Matters.
(a) Market Information. There is no established public trading market for the Certificates (b) Holders. As of December 31, 2005, based on records provided to the Trust by the DTC and the Trustee, the number of holders for each class of Certificate was as follows:
Class 1A1 1 Class 2A1 1 Class 3A1 1 Class 4A1 1 Class B1 1 Class B2 1 Class B3 1 Class B4 1 Class B5 1 Class B6 1 Class 2AR 2
Total: 12
(c) Dividends. Not applicable. (d) Item 701 of Regulation S-K. Not applicable. (e) Rule 463 of the Securities Act of 1933. Not applicable.
Item 6.
Item 6. Selected Financial Data.
Omitted.
Item 7.
Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operation.
Omitted.
Item 7A.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable.
Item 8.
Item 8. Financial Statements and Supplementary Data.
See Item 15(a), Exhibits 99.1, 99.2, 99.3,99.4 for information provided in lieu of information required by Item 302 of Regulation S-K.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A.
Item 9A. Controls and Procedures.
Not applicable.
Item 9B.
Item 9B. Other Information
None.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant.
Not applicable.
Item 11.
Item 11. Executive Compensation.
Not applicable.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
Not applicable.
Item 13.
Item 13. Certain Relationships and Related Transactions.
Not applicable.
Item 14.
Item 14. Principal Accounting Fees and Services.
Not applicable.
PART IV
Item 15.
Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) Exhibits
(99.1) Annual Independent Accountants Servicing Reports concerning servicing activities for the year ended December 31, 2005
(99.2) Report of Management as to Compliance with Minimum Servicing Standards for the year ended December 31, 2005.
(99.3) Annual Statements of Compliance under the Pooling and Servicing Agreements for the year ended December 31, 2005.
(99.4) Aggregate Statement of Principal and Interest Distributions to Certificate Holders.
(b) Reports on Form 8-K, dated as of October 31, 2005, November 30, 2005, and December 31, 2005, were filed by the Company in order to provide the statements for the monthly distributions to holders of the Certificates. No other reports on Form 8-K have been filed during the last quarter of the period covered by this report.
(c) Not applicable.
(d) Omitted.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized:
First Horizon Mortgage Pass-Through Trust 2005-AR3 (Registrant)
Signed:
By: Terry L. McCoy
By: /s/ Terry L. McCoy, EVP
Dated: March 27, 2006
CERTIFICATION
I, Terry L. McCoy, in my capacity as Executive Vice President Officer of First Horizon Home Loan Corporation (the Master Servicer) hereby cerfity that:
1. I have reviewed this Annual Report of Form 10-K and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by this annual report of First Horizon Mortgage Pass-Through Certificates, Series 2005-AR3
2. Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances in which such statements were made, not misleading as of the last day of the period covered by this annual report and
3. Based on my knowledge, the distribution of servicing information required to be provided to the trustee by the Master Servicer under the Pooling and Servicing Agreement is included in these reports.
4. I am responsible for reviewing the activities performed by the servicer under the Agreement and based upon my knowledge and the annual compliance review required under the Agreement, and except as disclosed in the reports, the servicer has fulfilled its obligations under the Agreement and
5. The reports disclose all significant deficiencies relating to the servicers compliance with the minimum servicing standards, based upon the report provided by an independent public accountant after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedure as set forth in the Agreement that is included in these reports.
Dated: March 27, 2006
FIRST HORIZON HOME LOAN CORPORATION
By: Terry L. McCoy /s/ Terry L. McCoy 		 Executive Vice President
EX. 99-1
Independent Accountants Report
KPMG LLP Suite 3100 717 North Harwood Street Dallas, TX 75201-6585
The Board of Directors First Horizon Home Loan Corporation and Subsidiaries:
We have examined managements assertion, included in the accompanying management assertion letter, that First Horizon Home Loan Corporation and its wholly owned subsidiary, First Tennessee Mortgage Services, Inc., which includes a consolidated investment in FH-FF Mortgage Services, L.P. (the Company), complied with the minimum servicing standards set forth in the Mortgage Bankers Association of Americas Uniform Single Attestation Program for Mortgage Bankers (USAP) as of and for the year ended December 31, 2005. Management is responsible for the Companys compliance with those minimum servicing standards. Our responsibility is to express an opinion on managements assertion about the Companys compliance based on our examination.
Our examination was conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Companys compliance with the minimum servicing standards specified above and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Companys compliance with the minimum servicing standards.
In our opinion, managements assertion that the Company complied with the aforementioned minimum servicing standards as of and for the year ended December 31, 2005, is fairly stated, in all material respects.
/s/ KPMG LLP --------------- KPMG LLP March 2, 2006
EX. 99-2
KPMG LLP 717 North Harwood Street Suite 3100 Dallas, TX 75201
March 2, 2006
Ladies and Gentlemen:
As of and for the year ended December 31, 2005, First Horizon Home Loan Corporation and its wholly-owned subsidiary, First Tennessee Mortgage Services, Inc., which includes a consolidated investment in FH-FF Mortgage Services, L.P., (collectively, the Company) complied in all material respects with the minimum servicing standards set forth in the Mortgage Bankers Association of Americas Uniform Single Attestation Program for Mortgage Bankers. As of and for this same period, the Company had in effect a fidelity bond policy in the amount of $100,000,000 and an errors and omissions policy in the amount of $25,000,000.
Sincerely,
/s/ Peter F. Makowiecki - ------------------------ Peter F. Makowiecki Chief Executive Officer
First Horizon Home Loan Corporation 4000 Horizon Way Irving, TX 75063 Phone: 800-707-0139
EX. 99-3 ANNUAL SERVICING CERTIFICATION
In connection with the loans serviced by First Horizon Home Loans (formerly FT Mortgage Companies) during the fiscal year December 31, 2005, we confirm the following to be materially correct and accurate to the best of our knowledge, information and belief:
1.	Real estate taxes, special assessments and any charges that may become a lien upon the property and which come due in the last calendar year have been paid. This also includes the verification with taxing authorities for non-escrowed mortgages.
2.	FHA insurance premiums or private mortgage insurance premiums, if applicable, have been paid and are in full force and effect.
3.	Properties are adequately insured and your interest, as Mortgagee, is properly provided for in the mortgage clause. This includes both flood and hazard insurance.
4.	For those loans being escrowed for the payment of taxes and insurance, sufficient amounts are being collected monthly to provide for payment of future items.
5.	Property inspections have been completed according to the provisions of our servicing agreement, if applicable.
6.	All other provisions of the servicing agreements have been adhered to.
7.	To the extent there exist any exceptions to the foregoing that are deemed to be material in nature, such exception(s) will be recited in an Exhibit attached hereto and accompanied by an explanation thereof. In the event, no Exhibit is attached hereto it is to be presumed that no exceptions of a material nature to the foregoing exist.
By: /s/ Isabel Palomino -------------- (Signature)
Isabel Palomino -------------- (Printed name)
Vice President -------------- (Title)
March 28, 2006 -------------- (Date)
SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT.
(a)(i) No annual report is provided to the Certificateholders other than with respect to aggregate principal and interest distributions.
(a)(ii) No proxy statement, form of proxy or other proxy soliciting material has been sent to any Certificateholder with respect to any annual or other meeting of Certificateholders.
Ex-99.4 Schedule of Year-To-Date Principal and Interest Distributions to Certificateholders