Study Calls Pay Cuts Main Reason for Mortgage Defaults

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NEW YORK If the government really wants to stop home foreclosures from surging, here's a simple plan: Boost Americans' income, put more funding toward medical research and insist on marriage counseling for all. And then start buying up land to raise housing prices.

As far-fetched as all that may sound, such efforts would do more to curb default rates than the Bush administration's plan to freeze adjustable mortgage rates in the coming years for a limited number of subprime borrowers.

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Study Calls Pay Cuts Main Reason for Mortgage Defaults

Data from Countrywide Financial Corp., the nation's largest mortgage lender, back up this point. The No. 1 reason its customers have been defaulting on mortgage loans is...

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