Wells Fargo & Co., the largest U.S. home lender, agreed to an $869 million settlement with Freddie Mac to resolve repurchase claims on faulty loans sold to the government-backed firm before Jan. 1, 2009, Bloomberg News reported today. The accord includes a one-time $780 million cash payment to Freddie Mac, a reduction that reflects credits tied to previous buybacks, San Francisco-based Wells Fargo said yesterday. The firm already had set aside money to cover the cost of the agreement. Home lenders including Bank of America Corp. and Citigroup Inc. have sought to resolve claims tied to faulty mortgages sold to Fannie Mae and Freddie Mac, the U.S.-owned firms forced to take a $187.5 billion bailout after losses from soured mortgages. Citigroup reached a $395 million deal with Freddie Mac last week and announced a $968 million settlement with Fannie Mae in July.
