Wells Fargo & Co., the largest U.S. mortgage lender, said a refinancing program may cut annual interest income by as much $215 million, more than double what the firm estimated three months ago.

The fair value of loans involved in the program, part of a settlement of state and federal loan-servicing probes, may be reduced by as much $1.7 billion, the San Francisco-based company said today in a quarterly regulatory filing. It had predicted a $700 million reduction in its May report.

Wells Fargo had forecast a $100 million reduction in annual net interest income in the filing three months ago. The "lifetime" amount of lost interest income from the refinancing program may reach $1.7 billion, the firm said today. That compares with the $720 million it expected in May.

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