Bank of America, the second- biggest U.S. lender, agreed to pay government-backed Freddie Mac $404 million to resolve mortgage-repurchase claims.

The deal covers about 716,000 loans created by Charlotte, North Carolina-based Bank of America from Jan. 1, 2000, to Dec. 31, 2009, and sold to Freddie Mac, the firms said today in separate statements. The payment, minus credits of $13 million that the bank already paid Freddie Mac, is covered by reserves in place Sept. 30, the lender said.

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