| In 2007, approximately 20% of U.S. homeowners with a subprime mortgage loan experienced mortgage default, which resulted in the bank foreclosing on their home. The purpose of this multiple case study was to explore strategies some bank managers used to reduce subprime mortgage default rates. Using a purposeful sampling, the population for this study comprised of 4 bank managers located in Summerville, South Carolina. The conceptual framework for this study included elements from Berle and Means' agency theory and Donaldson's stewardship theory. Data were collected from semistructured interviews, mortgage loan applications, bank policies and procedures, brochures, and direct observation, which provided detailed information about bank managers' experiences with writing subprime mortgage loans. The collected data were transcribed, member checked, and triangulated to validate their credibility and trustworthiness. The 2 themes that emerged from data analysis were providing good customer service, and providing clear and concise communication. Potential homeowners may experience lower mortgage defaults if they have a better understanding of the various types of subprime mortgage loans and the mortgage lending process. Findings in this study could be used by mortgage professionals to improve customer service and communication in order to ensure that future homeowners seeking subprime mortgage loans receive the loan that best meets their needs and financial goals. This study's implications for positive social change include the potential to equip lenders with strategies to minimize subprime mortgage default rates and to provide information to future homeowners seeking to obtain a subprime mortgage loan. |
