Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 1 of 24

Exhibit A
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 2 of 24

Agreem ent Among the Califor nia Attorne y Genera l and Service rs
a Corpor ation, Wells
The Attorne y Genera l of the State of Califor nia ( ..AG"), Bank of Americ
tively "the Parties "), in
Fargo & Compa ny, and JPMor gan Chase & Co., ("Servi cers") (collec
ng Agreem ent. hereby
anticipa tion of, and in conside ration of enterin g into the Nationa l Servici
t A, provide d. howeve r,
agree to the terms of the Califor nia Agreem ent attache d hereto as Exhibi
that this agreem ent is conditi oned on and is not effectiv e until and
unless:

Exhibi t B has been agreed to

(I) the Agreem ent Regard ing Origina tion Claims attache d hereto as
Agreem ent;
and execute d by the service rs who enter into the Nationa l Ser.vicing
ent include s the phrase
(2) the State Release in final form in the Nation al Servici ng Agreem
ers in or of securit ies" in each locatio n
"other conduc t in connec tion with investo rs or purchas
where redline d/under lined in Exhibit C attache d hereto;
Nationa l Servici ng
(3) the AG reviews and approv es the final and comple te terms of t;he
Agreem ent; and
has entered an order approv ing
( 4) the United States Distric t Court for the Distric t of Colum bia
the National Servici ng Agreem ent and that order has becom e final.

BANK OF AMER ICA CORPO RATIO N

~~~~
Dated: Februa ry _1_, 2012 By:

~ A R G O & COMP ANY

Dated: Februa ry _ , 20 I 2 By:

JPMOR GAN CHASE & CO.

Dated: Febru ary_, 2012 By:

KAMALAD. HARRIS
Attorne y Genera l of the State of Califor nia

Dated: Februa ry j_, 2012 By: ~

MICHA EL TRON COSO
Senior Counse l to the Attorne y Genera l
FEB-09-2012Case
THU 08:17 AM WELLS FARGO LAW/CRE
1:12-cv-00361-RMC DIV 2-1 FAX
Document NO,03/13/12
Filed 5152135192
Page 3 of 24 P. 02

~ ~ n t Among_the California Attorney General and Servicers

The Attorney General of the State of California ("AG''), Bank of America Corporation, Wells
Fargo & Company, and JPMorgan Chase & Co., ("Servicers") (collectively ''the Parties"), in
anticipation of, and in consideration of entering into the National Servicing Agreement, hereby
agree to the terms of the Califomia Agreement attached hereto as .Exhibit A, provided, .however,
that this agreement is conditioned on and is not effective until and unless:

(l) the Agreement Regarding Origination Claims attached hereto as Exhibit B has been agreed to
and executed by the s,~rvicers who enter into the National Servicing Agreement;

(2) the State Release l n final form in the National Servicing Agreement includes the phrase
"other conduct in connection with investors or purchasers in or of securities" in each .location
where redlined/underl.ined in Exhibit C attached hereto;

(3) the AG reviews and approves the final and complete terms of the National Servicing
Agreement; and

(4) the United States :)istrict Court for the District of Colmnbia has entered an order approving
the National Servicin1~Agreement and that order has become final.

BANK OF AMERICA CORPORATION

Dated: February_,, 2012 By:

WELLS FARGO & COMPANY

Dated: February j_.,, 2012

By: ""J ~
f.vP

1PMORGAN CHASE & CO.

Dated: February_,., 2012 By:

KAMALA D. HARRIS
Attorney General of the State of Cal ifomia

Dated: February ___, 2012 By:

MICHAEL TRONCOSO
Senior Counse.l to the Attorney General

.i.
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 4 of 24

Agreem ent Among the California Attorney General and Servicer s

The Attorney General of the State of Californ ia (" AG"), Bank of America Corporation,
Wells
Fargo & Compan y, and JPMorg an Chase & Co., ("Servic ers") (collecti vely "the Parties")
, in
anticipation of, and in consider ation of entering into the Nationa l Servicin g Agreement,
hereby
agree to the terms of the Californ ia Agreem ent attached hereto as Exhibit A, provided
, however,
that this agreeme nt is conditio ned on and is not effective until and unless:

(1) the Agreem ent Regardi ng Origination Claims attached hereto as Exhibit B has been
agreed to
and executed by the servicers who enter into the Nationa l Servicin g Agreem ent;

(2) the State Release in final form in the National Servicing Agreem ent includes the phrase
"other conduct in connecti on with investors or purchasers in or of securitie s" in each location
where redlined/underlin ed in Exhibit C attached hereto;

(3) the AG reviews and approve s the final and complete terms of the Nationa l Servicin
g
Agreeme nt; and

(4) the United States District Court for the District of Columb ia has entered an order approvin
g
the National Servicin g Agreem ent and that order has become final.

BANK OF AMERI CA CORPO RATION

Dated: February ~ 2012 By:

WELLS FARGO & COMPA NY

Dated: Februa ry_, 2012 By:

~")

J~G CHASE & CO.

KAMAL A D . HARRIS
Attorney General of the State of Californ ia

Dated: February _ , 2012 By:

MICHAEL TRONC OSO
Senior Counsel to the Attorney General
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 5 of 24

EXHIBIT A to Agreement Among the California Attorney General and Servicers

The California Agreement

· Agreement. Through a separate agreement, each of Bank of America Corporation, Wells

Fargo & Company and JPMorgan Chase & Co. (“Servicers”) agree to undertake a total of
$12 billion of activities ($8.1 billion by Bank of America, $1.95 billion by Wells Fargo,
and $1.95 billion by JPMorgan Chase), as set forth below, with respect to mortgages on
residential properties located in the State of California (“the California Agreement”).

· Crediting Mechanism. Servicer shall receive credit against its obligations under the
California Agreement for any principal reduction on first or second liens (including
reductions through loan modifications, deeds-in-lieu or short sales) on Properties located
in California, only to the extent that such activity would qualify for credit under the
General Framework for Consumer Relief and Table 1 thereof. However, Servicer shall
receive dollar for dollar credit for each such activity. There shall not be any percentage
limits on the amount of credit available for any particular activity, except as specifically
provided below with respect to conforming/nonconforming limitations.

· Servicer will receive credit for first lien loan modification principal reduction on
any loans in Servicer’s entire portfolio, except for loans owned by the GSEs.
First lien loan modification principal reductions shall be subject to the
conforming/nonconforming limitations contained in the Consent Judgment.
[Minimum 85% conforming]

· Servicer will receive credit for second lien, short sale and deed-in-lieu principal
reduction on any loans in Servicer’s entire portfolio. Short sales and deed-in-lieu
principal reductions shall be subject to a minimum 75% conforming requirement.

· Servicer shall receive an additional 25% credit against its obligations under the
California Agreement for any first lien principal reduction taken within 12 months
of its Start Date (defined herein as the later of (a) the announcement date of the
National Servicing Agreement or (b) March 1, 2012) (e.g., a $1 credit for Servicer
activity would count as $1.25), in the Hardest Hit California Counties. The
Hardest Hit California Counties consist of the twelve California counties with the
highest annualized foreclosure rate in the previous calendar year, as measured by
Notice of Default filings.

· Servicer shall receive an additional 15% credit against its obligations under the
California Agreement for any first lien principal reduction taken within 12 months
of its Start Date (e.g., a $1 credit for Servicer activity would count as $1.15), in
counties other than the Hardest Hit California Counties.

· Servicer shall complete 75% of its obligations under the California Agreement
within two years of the Effective Date, as set forth in the Consent Judgment, and
100% of its obligations under the California Agreement within three years of the
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 6 of 24

Effective Date. Servicer shall not receive credit for any funds provided by federal
or state governmental entities, including but not limited to HAMP incentives.

! Payment for Failure to Meet Obligations under the California Agreement. If Servicer
fails to meet its obligations under the California Agreement within three years of the
Effective Date, Servicer shall pay to the California Attorney General (“AG”) 50% of the
unmet commitment amount, subject to a maximum payment of $300 million with respect
to Bank of America, and a maximum payment of $200 million with respect to Wells
Fargo and JPMorgan Chase (per Servicer); except that if the Servicer fails to meet the
two year 75% obligation noted above, and then fails to meet the three year 100%
obligation, the Servicer shall pay to the AG an amount equal to 65% of the unmet three-
year obligation amount, subject to a maximum payment of $400 million with respect to
Bank of America, and a maximum payment of $200 million with respect to Wells Fargo
and JPMorgan Chase (per Servicer). If Servicer fails to meet both its obligations under
the California Agreement and its commitment under the General Framework for
Consumer Relief, Servicer shall pay to the AG an amount equal to the greater of (a) the
amount owed to the AG under this provision; or (b) the amount owed to the AG under the
General Framework for Consumer Relief, Section 10(d) (payment provisions). The
purpose of all amounts payable hereunder is to induce Servicer to meet its obligations
under the California Agreement and its commitment under the General Framework for
Consumer Relief. The payment of such amount by Servicer to the AG shall satisfy
Servicer’s obligations to the AG under both the foregoing provision of the California
Agreement and the General Framework for Consumer Relief, Section 10(d).

! Role of the Monitor. Each quarter, the Monitor shall determine the amount of Consumer
Relief credit that Servicer has earned towards its obligations under the California
Agreement. At the one-, two-, and three-year points, the Monitor shall determine the
amount of Consumer Relief credit that Servicer has earned towards its obligations under
the California Agreement and shall determine any bonus and determine any payment
owed pursuant to the above terms. Upon request of the AG, the Monitor shall provide all
information in the Monitor’s possession concerning relief provided in California by the
Servicer. In addition, the Servicer shall provide to the AG such further information
regarding relief provided in California as reasonably requested.

! Disputes. Disputes over the Monitor’s reporting with respect to the California
Agreement shall be resolved in the District Court for the District of Columbia. The AG
may enforce any liquidated payment amount in California state court.

#####
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 7 of 24

EXHIBIT B to Agreement Among the California Attorney General and Servicers

Agreement Regarding Origination Claims

The Attorney General of the State of California ("AG") hereby enters into the following
agreement with Servicers regarding certain origination claims, in connection with the National
Servicing Agreement. For the purpose of this Agreement Regarding Origination Claims, the
terms "Servicer" and "Servicers" are defined synonymously with the term "Bank" in the State
Release contained in the National Servicing Agreement, with respect to each of the five
following entities: Bank of America Corporation, Wells Fargo & Company, and JPMorgan
Chase & Co., Citigroup, Inc., and Ally Financial, Inc. ("Servicers"). The AG and Servicers
(collectively "the Parties"), in anticipation of, and in consideration of the Parties entering into the
National Servicing Agreement, hereby agree as follows:

1. Notwithstanding any provisions to the contrary in the National Servicing Agreement or

the Consent Judgment entered pursuant thereto, the following claims of the AG against
the Servicers are preserved and not released or discharged:

• Any claims that may be brought pursuant to the California Attorney General's
authority under California Government Code Section 12989.3 and/or for
violations of California Government Code Section 12955. [Cal. Fair Employment
& Housing Act]

• Any claims that may be brought pursuant to the California Attorney General's
authority pursuant to California Business and Professions Code Section 320, but
only in connection with inquiries involving individual loans and not with respect
to inquiries, cases or claims with class action-type or mass action-type
characteristics; only with respect to a claim for "actual fraud," which means, as
one of the necessary elements, exclusively conduct involving an affirmative intent
to deceive borrowers by Servicer or its employees; and only with respect to
recovering actual direct borrower harm and not penalties or other remedies,
whether denominated as consequential damages, punitive damages, disgorgement,
equitable relief or otherwise. [Intervention at Direction of Cal. Department of
Consumer Affairs]

• Claims by the State of California based on actual fraud as defined in California

Civil Code Sections 1709 and 1710 (1, 3 and 4) in connection with Covered
Origination Conduct that occurred on loans made on or after July 1, 2009. The
remedies under such claims shall be limited to recovery of actual direct borrower
harm and not penalties or other remedies, whether denominated as consequential
damages, punitive damages, disgorgement, equitable relief or otherwise. As used
in this section, "actual fraud " means, as one of the necessary elements, exclusively
conduct involving an affirmative intent to deceive ·borrowers by Servicer or its
employees. For the avoidance of doubt, by executing its release of claims based
on Covered Origination Conduct for loans made before July 1, 2009, California
shall not forfeit or extinguish any rights it otherwise may have under applicable
law to obtain information related to conduct that occurred on loans made before
July 1, 2009 through subpoena, discovery or other appropriate legal proceedings.
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 8 of 24

2. The foregoing tenns of this Agreement Regarding Origination Claims are effective upon
the execution by the Parties of the National Servicing Agreement, and entry by the
United States District Court for the District of Columbia of an order approving the
National Servicing Agreement and that order has become final.

BANK OF AMERICA CORPORATION

Dated: February_, 2012 By:

WELLS FARGO & COMPANY

Dated: February_, 2012 By:

JPMORGAN CHASE & CO.

Dated: February_, 2012 By:

CITIGROUP, lNC.

Dated: February_, 2012 By:

ALLY FINANCIAL, INC.

Dated: · February_, 2012 By:

KAMALA D. HARRIS
Attorney General of the State of California

Dated: February.& 2012 By:

MJCM4Jilf TROW 1 1$ @ Be ,A'-{ M.~L.Soi0
Serri01 Caunsel to tbe Attorney General
$ P~uA.L -A.s~\""S.1F-s:'-.tT"
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 9 of 24

2. The foregoing tenns· of this Agreement Regarding Origination Claims are effective upon
the execution by the Parties of the National Servicing Agreement, 1U1d enqy by the
United States District Court for the District of Columbia of an order approving the
National Servicing Agreement and that order has become final.

BANK OF AMERICA CORPORATION

i. '-
bated: February 2012 By:

- ~~z:~~
WELLS FARGO & COMPANY

Dated: February _ , 2012 By:

JPMORGAN CHASE & CO.

Dated: February _ , 2012 By:

CITIGROUP, INC.

Dated: February _ , 2012 By:

ALLY FINANCIAL, INC.

Dated: February _ , 2012 By:

KAMALA D. HARRIS
Attorney General of the State of California

Dated: February _ , 2012 By:

MICHAEL TRONCOSO
Senior Counsel to the Attorney General

I
FEB-09-2012Case
THU 08:17 AM WELLS FARGO LAW/CRE
1:12-cv-00361-RMC DIV 2-1 Filed
Document FAX NO.03/13/12
5152135192
Page 10 of 24 P. 03

2. The foregoing terms of th.is Agreement Regarding Origination Claims are effective upon
the execution ·,y the Parties of the National Servicing Agreement, and entry by the
United States District Court for the District of Columbia of an order approving the
National Servicing Agreement and that order has become final.

BANK OF AMERICA CORPORATION

Dated: February __, 2012 By:

WELLS FARGO & COMPANY

Dated: February ~-• 20 l 2 By: w~J

f;\J
·/J
I

JPMORGAN CHASE & CO.

Dated: February , 2012 By:

CITIGROUP, INC.

Dated: February • 2012 By:

ALLY FINANCIAL, INC.

Dated: February ___, 2012 By:

KAMALA D. HARRIS
Attorney General of the State of California

Dated; February _ __, 2012 By:

MICHAEL TRONCOSO
Senior Counsel to the Attorney General
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 11 of 24

2. The foregoing terms of this Agreement Regarding Origination Claims are effective upon
the execution by the Parties of the National Servicing Agreement, and entry by the
United States District Court for the District of Columbia of an order approving the
National Servicing Agreement and that order has become final.

BANK OF AMERICA CORPORATION

Dated: February_, 2012 By:

WELLS FARGO & COMPANY

Dated: February_, 2012 By:

/}
~ CHASE & CO. _

Dated: February _f_, 2012

By:V~

CITIGROUP, lNC.

Dated: February_, 2012 By:

ALLY FINANCIAL, INC.

Dated: February_, 2012 By:

KAMALA D. HARRJS
Attorney General of the State of California

Dated: February_, 2012 By:

MICHAEL TRONCOSO
Senior Counsel to the Attorney General
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 12 of 24

made before July 1, 2009 through subpoena, discovery or other appropriate legal
proceedings.

2. The foregoing terms of this Agreement Regarding Origination Claims are effective upon
the execution by the Parties of the National Servicing Agreement, and entry by the
United States District Court for the District of Columbia of an order approving the
National Servicing Agreement and that order has become final.

BANK OF AMERICA CORPORATION

Dated: February_, 2012 By:

WELLS FARGO & COMPANY

Dated: February_, 2012 By:

JPMORGAN CHASE & CO.

Dated: February__, 2012 By:

CITIGROUP, INC.

Dated: February_, 2012 By:

ALLY FINANCIAL, INC.

Dated: February L 2012 By: ~~ J~

KAMALA D. HARRIS
Attorney General of the State of California

Dated: February __, 2012 By:

 CaseFAX
02 / 09/ 2012 10:31 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 13 of 24 ~001/002

EXHIBIT B to Agreemen t Among the California Attorney General and Servicers

Agreemen t Regarding Originatio n Claims

The Attorney General of the State of California ("AG") hereby enters into the following
agreemen t with Servicers regarding certain originatio n claims, in connectio n with the National
Servicing Agreemen t. For the purpose of this Agreemen t Regarding Originatio n Claims, the
terms "Servicer" and "Servicer s" are defined synonymo usly with the tenn "Bank" in the State
Release contained in the National Servicing Agreemen t, with respect to each of the five
foJJowing entities: Bank of America Corporatio n, Wells Fargo & Company , and JPMorgan
Chase & Co., c· · p, Inc., and Ally Financial, Inc. ("Servicer s"). The AG and Servicers
{collective] e Parties"), in anticipatio n of, and in considerat ion of the Parties entering into the
Natio ervicing Agreemen t, hereby agree as follows:

1. Notwithst anding any provisions to the contrary in the National Servicing Agreemen t or
I' . I ~k I the Consent Judgment entered pursuant thereto, the following claims of the AG against
~ the Servicers are preserved and not released or discharged :

rJ k • Any claims that may be brought pursuant to the California Attorney General's
authority under California Governme nt Code Section 12989.3 and/or for
violations of California Governme nt Code Section 12955. [Cal. Fair Employment
& Housing Act]

• Any claims that may be brought pursuant to the California Attorney General's
authority pursuant to California Business and Profession s Code Section 320, but
only in connectio n with inquiries involving individual loans and not with respect
to inquiries, cases or claims with class action-typ e or mass action-typ e
characteri stics; only with respect to a claim for "actual fraud," which means, as
one of the necessary elements, exclusivel y conduct involving an affirmativ e intent
to deceive borrowers by Servicer or its employee s; and only with respect to
.recoverin g actual direct borrower harm and not penalties or other remedies,
whether denomina ted as consequen tial damages, punitive damages, disgorgem ent,
equitable relief or otherwise. [Intervent ion at Direction of Cal. Departme nt of
Conswne r Affairs]

• Claims by the State of California based on actual fraud as defined in California

Civil Code Sections 1709 and 1710 (I, 3 and 4) in connectio n with Covered
Originatio n Conduct that occurred on loans made on or after July 1, 2009. The
remedies under such claims shall be limited to recovery of actual direct borrower
harm and not penalties or other remedies, whether denomina ted as consequen tial
damages, punitive damages, disgorgem ent, equitable relief or otherwise. As used
in this section, "actual fraud" means, as one of the necessary elements, exclusively
conduct involving an affinnativ e intent to deceive borrowers by Servicer or its
employee s. For the avoidance of doubt, by executing its release of claims based
on Covered Originatio n Conduct for loans made before July l, 2009, California
shall not forfeit or extinguish any rights it otherwise may have under applicable
law to obtain information related to conduct that occurred on loans made before
July I , 2009 through subpoena, discovery or other appropriat e legal proceedings.
 CaseFAX
02/09/2012 10:31 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 14 of 24 14]002/ 002

2. The foregoing terms of this Agreement Regarding Origination Claims are effective upon
the execution by the Parties of the National Servicing Agreement, and entry by the
United States District Court for the District of Colwnbia of an order approving the
National Servicing Agreement and that order has become final.

BANK OF AMERICA CORPORATION

Dated: February_, 2012 By:

WELLS FARGO & COMPANY

Dated: February _ , 2012 By:

JPMORGAN CHASE & CO.

Dated: February __, 2012 By:

Dated: February q, 2012 By:

ALLY FINANCIAL, INC.

Dated: February_, 2012 By:

KAMALA D. HARRIS
Attorney General of the State of California

Dated: February _ , 2012 By:

MICHAEL TRONCOSO
Senior Counsel to the Attorney General
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 15 of 24

EXHIBIT C to Agreement Among the California Attorney General and Servicers

Terms and ConditionsState Release

I. Covered Conduct

“Covered Conduct” shall mean residential mortgage loan servicing, residential

foreclosure services, and residential mortgage loan origination services. For purposes of this

Release, the term “Bank” means [Entity name], as well as its current and former parent

corporations or other forms of legal entities, direct and indirect subsidiaries, brother or sister

corporations or other forms of legal entities, divisions or affiliates, and the predecessors,

successors, and assigns of any of them, as well as the current and former directors, officers, and

employees of any of the foregoing. For the purposes of the Covered Conduct section alone, the

term “Bank” shall include agents (including, without limitation, third-party vendors) of the Bank

and the Bank is released from liability for the covered conduct acts of its agents (including,

without limitation, third-party vendors). This Release does not release the agents (including,

without limitation, third-party vendors) themselves for any of their conduct. For purposes of this

Release, the term “residential mortgage loans” means loans secured by one- to four-family

residential properties, irrespective of usage, whether in the form of a mortgage, deed of trust, or

other security interest creating a lien upon such property or any other property described therein

that secures the related mortgage note.

For purposes of this Release, “residential mortgage loan servicing” means all actions,

errors or omissions of the Bank, arising out of or relating to servicing (including subservicing

and master servicing) of residential mortgage loans from and after the closing of such loans,

whether for the Bank’s account or for the account of others, including, but not limited to, the

following: (1) Loan modification and other loss mitigation activities, including, without

1
23597676v1
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 16 of 24

limitation, extensions, forbearances, payment plans, short sales and deeds in lieu of foreclosure,

and evaluation, approval, denial, and implementation of the terms and conditions of any of the

foregoing; (2) Communications with borrowers relating to borrower accounts, including, without

limitation, account statements and disclosures provided to borrowers; (3) Handling and

resolution of inquiries, disputes or complaints by or on behalf of borrowers; (4) Collection

activity related to delinquent borrower accounts; (5) Acceptance, rejection, application or posting

of payments made by or on behalf of borrowers, including, without limitation, assessment and

collection of fees or charges, placement of payments in suspense accounts and credit reporting;

(6) Maintenance, placement or payment (or failure to make payment) of any type of insurance or

insurance premiums, or claims activity with respect to any such insurance; (7) Payment of taxes,

homeowner association dues, or other borrower escrow obligations, and creation and

maintenance of escrow accounts; (8) Use, conduct or supervision of vendors, agents and contract

employees, whether affiliated or unaffiliated, including, without limitation, subservicers and

foreclosure and bankruptcy attorneys, in connection with servicing, loss mitigation, and

foreclosure activities; (9) Adequacy of staffing, training, systems, data integrity or security of

data that is unrelated to privacy issues, quality control, quality assurance, auditing and processes

relating to the servicing of residential mortgage loans, foreclosure, bankruptcy, and property sale

and management services; (10) Securing, inspecting, repairing, maintaining, or preserving

properties before and after foreclosure or acquisition or transfer of title; (11) Servicing of

residential mortgage loans involved in bankruptcy proceedings; (12) Obtaining, executing,

notarizing, endorsing, recording, providing, maintaining, registering (including in a registry

system), and transferring promissory notes, mortgages, or mortgage assignments or other similar

documents, or transferring interests in such documents among and between servicers and owners,

2
23597676v1
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 17 of 24

and custodial functions or appointment of officers relating to such documents; (13) Decisions on

disposition of residential mortgage loans, including, without limitation, whether to pursue

foreclosure on properties, whether to assert or abandon liens and other claims and actions taken

in respect thereof, and whether to pursue any particular loan modification or other form of loss

mitigation; (14) Servicing of residential mortgage loans of borrowers who are covered by federal

or state protections due to military status; (15) Licensing or registration of employees, agents,

vendors or contractors, or designation of employees as agents of another entity; (16) Quality

control, quality assurance, compliance, audit testing, oversight, reporting, or certification or

registration requirements related to the foregoing; and (17) Trustee functions related to the

servicing of residential mortgage loans.

For purposes of this Release, “residential foreclosure services” means all actions, errors

or omissions of the Bank arising out of or relating to foreclosures on residential mortgage loans,

whether for the Bank’s own account or for the account of others, including, but not limited to,

the following: (1) Evaluation of accounts for modification or foreclosure referral; (2)

Maintenance, assignment, recovery and preparation of documents that have been filed or

otherwise used to initiate or pursue foreclosures, and custodial actions related thereto; (3)

Drafting, review, execution and notarization of documents (including, but not limited to,

affidavits, notices, certificates, substitutions of trustees, and assignments) prepared or filed in

connection with foreclosures or sales of acquired properties, or in connection with remediation of

improperly filed documents; (4) Commencement, advancement and finality of foreclosures,

including, without limitation, any issues relating to standing, fees, or notices; (5) Acquisition of

title post-foreclosure or in lieu of foreclosure; (6) Pursuit of pre- and post-foreclosure claims by

the Bank, including, without limitation, the seeking of deficiency judgments when permitted by

3
23597676v1
 Case 1:12-cv-00361-RMC Document 2-1 Filed 03/13/12 Page 18 of 24

law, acts or omissions regarding lien releases, and evictions and eviction proceedings; (7)

Management, maintenance, and disposition of properties in default or properties owned or

controlled by the Bank, whether prior to or during the foreclosure process or after foreclosure,

and executing, notarizing, or recording any documents related to the sale of acquired properties;

and (8) Trustee functions related to the foreclosure of residential mortgage loans.

For purposes of this Release, “residential mortgage loan origination services” means all

actions, errors or omissions of the Bank arising out of or relating to the origination of, or the

assistance in the origination of, residential mortgage loans, or the purchasing of residential

mortgage whole loans, including, but not limited to, the following: (1) Advertising, solicitation,

disclosure, processing, review, underwriting, closing and funding of borrower residential

mortgage loans or lending services, including, without limitation, the charges, terms, pricing, and

conditions of such loans or lending services; (2) Approving or denying loan applications; (3)

Recommendation, offering or provision of loan products, including, without limitation, whether

such products’ features or terms and conditions were appropriate for a particular borrower; (4)

Valuation of the properties used as collateral for such loans, including, without limitation, use of

employees, independent and vendor management appraisers, and alternative valuation methods

such as AVMs and BPOs; (5) Use, referral, conduct or supervision of, or payment of fees or

other forms of consideration to, vendors, agents or contract employees, whether affiliated or

unaffiliated, and whether retained by the Bank, borrower or otherwise, including, without

limitation, closing agents, appraisers, real estate agents, mortgage brokers, and providers of real

estate settlement services; (6) Drafting and execution of residential mortgage loan documents

and disclosures and the provision of such disclosures; (7) Obtaining or recording of collateral

documents relating to the origination of residential mortgage loans, including, without limitation,

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use of trustees or designees on mortgages or deeds of trust; (8) [Licensing and registration of

employees in connection with origination of residential mortgage loans] [for resolution with

banking regulators]; (9) Quality control, quality assurance, or compliance audit testing, or

oversight related to the origination of residential mortgage loans; and (10) Communications with

borrowers related to the origination of residential mortgage loans.

II. Release of Covered Conduct

By its execution of this Consent Judgment, the Attorneys General and state banking

regulators (“Regulators”), which are a party to this Agreement, release and forever discharge the

Bank from the following: any civil or administrative claim, of any kind whatsoever, direct or

indirect, that an Attorney General or state banking regulatorRegulator, respectively, has or may

have or assert, including, without limitation, claims for damages, fines, injunctive relief,

remedies, sanctions, or penalties of any kind whatsoever based on, arising out of, or resulting

from the Covered Conduct on or before the Effective Date, or any examination (or penalties

arising from such an examination) relating to the Covered Conduct on or before the Effective

Date, except for claims and the other actions set forth in Section III, below (collectively, the

“Released Claims”).

This Release does not release any claims against any entity other than the Bank as

defined in Section I above.

III. Claims and Other Actions Exempted from Release

Notwithstanding the foregoing and any other term of this Consent Judgment, the

following claims are hereby not released and are specifically reserved:

1. Securities and securitization claims based on the offer, sale, or purchase of

securities, or other conduct in connection with investors or purchasers in or of securities,

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regardless of the factual basis of the claim, including such claims of the State or State entities as

an owner, purchaser, or holder of whole loans, securities, derivatives or similar investments,

including, without limitation, mortgage backed securities, collateralized debt obligations or

structured investment vehicles, and including, but not limited to, such claims based on the

following:

(a) the creation, formation, solicitation, marketing, assignment, transfer, offer,

sale or substitution of securities, derivatives, or other similar investments, including,

without limitation, mortgage backed securities, collateralized debt obligations,

collateralized loan obligations, or structured investment vehicles;

(b) representations, warranties, certifications, or claims made regarding such

securities or investments, such as representations, warranties, certifications or claims

regarding origination, funding, and underwriting activities, and including the eligibility,

characteristics, or quality of the mortgages or the mortgagors;

(c) the transfer, sale, conveyance, or assignment of mortgage loans to, and the

purchase and acquisition of such mortgage loans by, the entity creating, forming and

issuing the securities, derivatives or other similar investments relating to such mortgage

loans;

(d) all servicing-, foreclosure-, and origination-related conduct, but solely to the

extent that such claims are based on the offer, sale, or purchase of securities, or other

conduct in connection with investors or purchasers in or of securities; and

(e) all Covered Conduct, but solely to the extent that such claims are based on the

offer, sale, or purchase of securities, or other conduct in connection with investors or

purchasers in or of securities.

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For avoidance of doubt, securities and securitization claims based on the offer, sale, or purchase

of securities, or other conduct in connection with investors or purchasers in or of securities, that

are based on any source of law, including but not limited to false claims act or equivalent laws,

securities laws, and common law breach of fiduciary duty, are not released.

2. Claims against a trustee or custodian or an agent thereof based on or arising out of

the conduct of the trustee, custodian or such agent related to the pooling of residential mortgage

loans in trusts, mortgage backed securities, collateralized debt obligations, collateralized loan

obligations, or structured investment vehicles, including but not limited to the performance of

trustee or custodial functions in such conduct.

3. Liability based on the Bank’s obligations created by the Consent Judgment.

4. Obligations relating to assurances of voluntary compliance entered into between

various states and Wells Fargo, N.A. in 2010, 2011, and 2012 relating to pay option ARMs.

5. Claims raised by the Illinois Attorney General in Illinois v. Wells Fargo & Co., et

al., 2009-CH-26434.

6. Claims raised in State of Connecticut v. Acordia, Inc., X10-UNYCV-

0704020455-S (currently pending before the Connecticut Supreme Court).

7. Claims against Mortgage Electronic Registration Systems, Inc. or MERSCORP,

INC.

8. Claims arising out of alleged violations of fair lending laws that relate to

discriminatory conduct in lending.

9. Claims of state, county and local pension or other governmental funds as

investors (whether those claims would be brought directly by those pension or other

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governmental funds or by the Office of the Attorney General as attorneys representing the

pension or other governmental funds).

10. Tax claims, including, but not limited to, claims relating to real estate transfer

taxes.

11. Claims of county and local governments and claims of state regulatory agencies

having specific regulatory jurisdiction that is separate and independent from the regulatory and

enforcement jurisdiction of the Attorney General, but not including claims of state banking

regulatorsRegulators that are released herein.

12. Criminal enforcement of violations of state criminal laws.

13. Claims of county recorders, city recorders, and town recorders (or, for Hawaii

only, where a statewide recording system is applicable and operated by the state, claims by

Hawaii; and for Maryland, where the recording system is the joint responsibility of the counties

or Baltimore City and the state, claims of the counties or Baltimore City and the state), for fees

relating to the recordation or registration process, regardless of whether those claims would be

brought directly by the recorders or through the Office of the Attorney General as attorneys

representing the county recorders. [Need to add description from Maryland as to their hybrid

state/county system]

14. Claims and defenses asserted by private third parties, including individual

mortgage loan borrowers, in their personal capacity on an individual or class basis.

15. Claims seeking injunctive or declaratory relief to clear a cloud on title where the

Covered Conduct has resulted in a cloud on title to real property under state law; provided,

however, that neither the Attorneys General or state banking regulatorsnor Regulators shall not

otherwise take actions seeking to invalidate past assignments or foreclosures. For the avoidance

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of doubt, nothing in this paragraph 15 releases, waives or bars any legal or factual argument

related to the validity of past mortgage assignments or foreclosures that could be made in support

of claims not released herein, including without limitation all claims preserved under paragraphs

1 through 16 of Part III of this Release.

16. Disciplinary proceedings brought by state banking regulatorsa Regulator against

individual employees involved inwith respect to mortgage loan origination conduct for

misconduct or violations under state law.

17. Claims against Bank for reimbursement to a mortgage borrowers:

(a) That represent: (i) a fee imposed upon and collected from a mortgage

borrower by Bank and retained by Bank which fee is later determined to have been

specifically prohibited by applicable state law (an “Unauthorized Fee”), provided that

such determination of impermissibility is not predicated, directly or indirectly, on a

finding of a violation of any federal law, rule, regulation, agency directive or similar

requirement; and (ii) an actual overpayment by a borrower resulting from a clear and

demonstrable error in calculation of amounts due from said borrower; and

(b) That are subject to the following: (i) are identified in the course of a

mandatory state regulatory compliance examination commenced after the Effective Date

by one of the Regulators listed in Schedule “Z” attached hereto, which examination

period is specifically limited to Bank’s Covered Conduct beginning on January 1, 2011

and ending January 1, 2012; or (ii) are part of a state regulatory compliance examination

that was open or in process as of the Effective Date; and

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(c) That are not duplicative of any prior voluntary or involuntary payment to the

affected loan borrower by Bank, whether directly or indirectly from any State Payment or

other source.

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