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Subprime borrowers are frustrating bankers


Published: March 10, 2008 at 12:16 PM
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WASHINGTON, March 10 (UPI) -- U.S. homeowners are walking away from their mortgage agreements in increasing numbers, frustrating bankers, USA Today said Monday.

The Mortgage Bankers Association said last week almost 3 million homeowners were behind on their mortgage payments.

Bankers are trying to help, but many homeowners are wary.

Fearing news from the bank is always bad, more than 23 percent of borrowers involved in a foreclosure proceeding had no contact with the lender prior to the action, the report said.

Almost a fifth -- 18 percent -- involve absentee homeowners.

"I can't get you to pay if you've got no skin in the game," said Dennis Lauria, senior vice president of Popular Mortgage Servicing in Cherry Hill, N.J.

Lenders are also wary. Afraid of being stuck with more unoccupied homes, they are pushing homeowners to try government programs to renegotiate terms.

The success has been limited so far, but work has been picking up at Safeguard Properties, which helps care for properties that have been abandoned.

Business at Safeguard Properties has risen more than 15 percent during the past year, the report said.

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MORTGAGE CEO COMPENSTATION
Angelo Mozilo, founder and CEO of Countrywide Financial Corporation (second from right), testifies before a House Oversight and Government Reform Committee hearing on the compensation mortgage company CEOs receive on Capitol Hill in Washington on March 7, 2008. This hearing is part of Congress' ongoing examination of the subprime mortgage crises. From left are Richard Parsons, chairman of Citigroup's Personnel and Compensation Committee; E. Stanley O'Neal, former chairman and CEO of Merrill Lynch; John Finnegan, chairman of Merrill Lynch's Management Development & Compensation Committee; Mozilo; and Harley Snyder, chairman of Countrywide Financial Corporation's Compensation Committee. (UPI Photo/Roger L. Wollenberg)
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