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>>> well, we are back following the fraud closure paper trail and it get uglier the deeper that you dig. millions of thoforeclosures could be infected with faulty paper work and federal efforts are falling short. the banks refuse to reduce payments. all this as we learn those on the inside who have voiced concerns may have been silenced by the superiors. nbc senior investigative correspondent lisa myers introduces us to two whistle-blowers. hi, lisa.

>> reporter:  hi, dylan. both the banks of service mortgages and the federal government insists they’re doing everything possible to help troubled homeowners avoid foreclosure but our nbc news invest found that’s not times not the case. two insiders that saw the process firsthand say the deck often is stacked against homeowners who deserve help. for almost ten years, chris wyatt worked for a mortgage servicing company. a year ago he quit the business. he couldn’t stomach what he saw. an unwillingness to help troubled homeowners by modifying the loans. and worse, a deliberate strategy of pushing families in to foreclosure. has there been a rush to foreclose in your view?

>> i think there has been a rush to foreclose. i think the thing that most made me upset is that you had people that qualified for a loan modification that were denied and went into foreclosure.

>> reporter:  lost their homes?

>> lost the homes.

>> even though they deserved modification.

>> even though they did.

>> reporter:  why would a banker servicer do that?

>> it comes down to dollars and cents.

>> reporter:  he say it is bottom line when you count the fees and expenses, servicers make more money foreclosing than modifying a loan.

>> they have a huge financial incentive to foreclose.

>> reporter:  write who’s now a paid expert witness against banks says servicers also were overwhelmed. by the sheer number of people asking for help. and denied some modifications just to clear up the backlog. is there ever any consideration of the human carnage?

>> not servicing industry? no, i don’t think so.

>> reporter:  caroline heron helped design and implement the government’s loan modification program as a consultant at fannie mae, helping the treasury department run the program. she says there was pressure to get homeowners into trial modifications. why was there such a rush to get people in to these trial modifications?

>> because of the program supposed to help up to 4 million people and they needed to make progress.

>> reporter:  so it was about the numbers?

>> it was about the numbers.

>> reporter:  he says she warned executives the program was hurting some homeowners and they ignored her.

>> executives were worried about getting the trial modification numbers up and so we could deal with problems later.

>> reporter:  last year fannie mae filed her. she said it was because of the concerns. she’s suing the agency. fannie mae says an investigation found no merit to the allegations.

>> you know, over time, i’ve just begun to think that this wasn’t as much about homeowners as it was originally portrayed and it feels like it was more about the banks.

>> reporter:  even though publicly they said it was all about helping homeowners.

>> correct. it seemed to be to appease the banks, investors and worry about the homeowners last.

>> reporter:  fannie mae would not comment further on the allegations. treasury officials acknowledge that the performance of servicers is inadequate and say they don’t have the power to police them n. a settlement with bank regulators servicers recently agreed to review foreclosures over the last two years and improve their treatment of customers but critics say that is entirely inadequate and pushing for sanctions and fines.

>> one of the whistle-blowers is in that spot. chris wyatt received an e-mail? what is going on with him?

>> reporter:  yes. from a lawyer at gold man sox. goldman opened the company that he worked for. litman loan servicing. even though he never mentioned — even though in our report we never mentioned the company, the e-mail claims that wyatt in our interview im improperly revealed secrets. the e-mail says, your comments disclose kcht shl information learned while you were employed by litton and therefore are a violation of your confidentiality obligations. we reserve all our legal rights with regard to this violation. now, the way i read this e-mail, dylan, it seems to suggest that the practices of wyatt told us going on within the industry may, in fact, have been going on inside the company owned by goldman sachs. we contacted goldman which declined comment.

>> goldman took a hit recently in the credit markets on speculation they may be vulnerable to a broad set of investigations. we’ll keep tracking that. lisa, congratulations, once again, on a sensational journalism that actually is relevant to our country in a way that’s best purpose.

>> thank you, dylan.

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