Freddie Mac, Wells Fargo settle on loans

Wells Fargo (NYSE: WFC) will pay $780 million in cash to government-controlled mortgage company Freddie Mac to resolve substantially all repurchase liabilities on home loans sold to Freddie before 2009, the New York Times reports.

The announcement comes just five days after Citigroup (NYSE: C) agreed to settle with Freddie Mac for $395 million regarding roughly 3.7 million mortgage claims.

America's fourth-largest bank by assets, Wells Fargo will cover the agreement with its reserve funds.

Read more at the New York Times.