Date of Conferral



Doctor of Business Administration (D.B.A.)




Kevin Davies


A majority of delinquent mortgage loans during the foreclosure crises were unmodified. Lending institutions lost on average 50% of a home's value in future profit from each foreclosure. The purpose of this single case study was to explore what strategies mortgage loan officers might use to improve the selection of delinquent borrowers for mortgage loan modification. The conceptual framework for this study was contract theory. The target population included mortgage loan officers from one community bank who successfully implemented strategies to modify loans for delinquent borrowers during the foreclosure crisis. Semistructured interviews were the data collection method. Emergent themes were identified in the data using a form of pattern matching called explanation building. The following key themes emerged: asymmetric information is essential to a mortgage loan officer's ability to select delinquent borrowers for mortgage loan modification and mortgage loan officers could create value for their organizations through mutually beneficial contracts. The results of this study can be used by leaders in financial institutions to improve the processes and procedures pertaining to mortgage loan modification. Improving mortgage loan modification practices can reduce foreclosure and the impact foreclosures have on the deterioration of communities, property values, and the degraded ability of governments to provide services due to the loss of revenue.

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