Wells Fargo & Co said on Monday that it would pay USD780 million in cash to Freddie Mac. The settlement would resolve all repurchased liabilities on home loans sold to the government controlled mortgage company.

The biggest US mortgage lender said the settlement was reached last September 27. The totaled amount for settlement payment reached a hefty USD869 million before credit adjustments related to prior loan repurchases.

Citigroup Inc also paid Freddie Mac USD395 million to settle similar claims. Five days after Citi paid the government backed mortgage lender over USD3.7 million loans sold from 2000 to 2012 Wells Fargo also announced the settlement.

Last August 7, the San Francisco based Wells Fargo estimated around USD2.2 billion loss over claims it breached representations and warranties in the sale of mortgage loans. According to Wells Fargo, the cost of its agreement is covered by existing reserves.

Wells Fargo also settled claims of the Wachovia Corp but did not disclose the financial terms of the settlement.