INTRODUCTION
This is the final report (“Final Report”) submitted by the Independent Reviewer (“IR”) on
the status of Wells Fargo Bank, N.A.’s (“Wells Fargo”) compliance with the Settlement
Agreement entered in In re Green, Case No. 11-33377-TJC (D. Md.), between the Department of
Justice’s United States Trustee Program (“USTP”) and Wells Fargo.
1
The USTP and Wells Fargo
are sometimes referred to herein as the “Parties.” References to the Settlement Agreement
include modifications thereof as agreed to by the Parties.
2
Further, references to the IR
sometimes include the IR’s Professionals.
3
The IR previously submitted a first report (“First Report”), filed with the Court on August
30, 2016, and a second report (“Second Report”), filed on May 12, 2017. In the First Report, the
IR discussed the circumstances leading to the Settlement Agreement, Wells Fargo’s obligations
under the Settlement Agreement, the IR’s role and mandate under the Settlement Agreement,
the IR’s work progress, including the establishment of the work plan that dictated the testing
protocol (“Work Plan”), findings through the date of the submission, and the IR’s anticipated
future action with respect to overseeing and assessing Wells Fargo’s compliance with the
Settlement Agreement.
In the Second Report, the IR discussed the evaluation by Wells Fargo Audit Services
(“WFAS”) of the population of debtors covered by the Settlement Agreement, including the
DataMart, which is the central repository constructed by Wells Fargo of the debtor accounts
that may have been impacted by the Settlement Agreement, the revisions and additions to the
testing requirements and protocol (referred to as “Metrics”), the USTP’s agreement with
respect to certificate of service issues identified by the COS Agreement and the January Letter
Agreement, the status and progress of test plan development and related testing, the IR’s
findings through the date of the submission related to credits and refunds and servicing
transfers, and the IR’s anticipated future action with respect to overseeing and assessing Wells
1
The Settlement Agreement is attached to the First Report as Exhibit 1.
2
The Settlement Agreement has been amended by: (i) the Letter Agreement, dated March 17, 2016, between
Wells Fargo and the USTP, which is attached to the First Report as Exhibit 2 (the “March Letter Agreement”); (ii)
the Letter Agreement, dated March 29, 2016, between Wells Fargo and the USTP, clarifying the method to
calculate the Reconciliation Amount under Metric 5 (as discussed further in this Report); (iii) the Letter Agreement,
dated August 24, 2016, between Wells Fargo and the USTP regarding a deficiency in Wells Fargo’s processes and
procedures relating to the preparation and filing of certificates of service accompanying payment change notice
filings, which is attached to the First Report as Exhibit 3 (the “COS Agreement”); and (iv) the Letter Agreement,
dated January 20, 2017, between Wells Fargo and the USTP clarifying Wells Fargo’s debtor account crediting
obligation, which is attached to the Second Report as Exhibit 1 (the “January Letter Agreement”).
3
See First Report for identification of the IR’s Professionals.
3 | Page