But industry reps acknowledged it's harder, though not impossible, to help with subprime loans packaged on the secondary market and sold to global investors.
Nonprofit loan counselors were skeptical about the workout claims.
"We don't see them (lenders) coming to the table ... a significant amount of the time," said Martha Lucey, president and chief executive officer of Fresno-based By Design Financial Solutions.
Lenders told lawmakers they're also monitoring borrowers' credit scores for signs of future trouble. They said many scores are falling as borrowers take on more credit card debt.
Often, said Ed Delgado, a senior vice president at San Francisco-based Wells Fargo, troubled borrowers are reluctant to give up cell phones and satellite TV to work out financial solutions.
"Some of this behavior does fall on the consumer," he told the committee.
Cell phones really aren't a luxury item. Increasingly they're a staple item, something people are expected to have to be functioning members of a certain segment of society.