Wells Fargo & Co, the nation's largest home mortgage lender, will pay a net $541 million to Fannie Mae to settle claims over defective home loans, Reuters reports.
The payout is part of $6.5 billion in loan buybacks with eight lenders that Fannie Mae announced today. The package completes the government-controlled mortgage company's efforts to have banks buy back troubled loans made before the financial crisis.
The other lenders include Bank of America Corp., which bought the former Countrywide Financial Group, and Citigroup Inc.
Fannie Mae and Freddie Mac were directed by the Federal Housing Finance Agency to reduce outstanding loan repurchase demands by the end of this year. Wells Fargo agreed in September to pay a net $780 million to the smaller Freddie Mac to resolve similar repurchase claims.