If you're really curious about what's going on with Wallace these days, it sounds like something's very close to happening. And according to the young right back's agent, Frederico Moraes, that something is a loan deal to Walter Mazzarri's Inter Milan:
We are truly only a step away from completing the deal. We are really only a few details away from the transfer. At this point, if all goes well, he should meet up with the team in the United States.
We were told it was a straight loan but the teams are discussing those terms. Inter have already agreed terms with the player. There’s no problem.
-Source: FC Inter News vis ESPN.
I'm not actually a big fan of Wallace going to Inter. While he should get plenty of playing time as they need a right wingback, I'm not at all sure about playing him in a position that Chelsea don't use. Wingbacks are much more aggressive than fullbacks, and they don't necessarily transition that well -- Napoli's Christian Maggio, who is a brilliant 3-4-3 player but struggles in a back four, is a classic example of this. I'd prefer Wallace to be playing as a pure right back.
But that's not really a huge deal, and how often he'll be playing's probably a more important consideration. With that (and the ridiculous success of our loanees lately) in mind, it's probably all good. In Michael Emenalo we trust.