Date of Award:

2006

Document Type:

Thesis

Degree Name:

Master of Science (MS)

Department:

Family, Consumer, and Human Development

Advisor/Chair:

Lucy Delgadillo

Abstract

The purpose of this study was to define and describe the nature of predatory mortgage lending in the state of Utah . Twelve professionals from the state who work in the mortgage lending market participated. Data consisted of interviewee comments and were analyzed qualitatively using a multi-step method of coding for concepts and themes.

Through coding and analysis it was determined that the term predatory mortgage lend ing is defined as an act of abuse that is targeted towards a borrower with one or more vulnerable characteristics. It was al so found that users of this term do not always adhere to this strict definition, but rather use it as a catch-all term for any general mortgage abuse, rather than only for those that are targeted. The term is al so used when referring to instances of fraud, and nearly all other forms of unfair lending.

To help increase the measurability of predatory lending, the interviews also gave descriptive detail in terms of its magnitude, underlying factors, commonly occurring practices, victim characteristics, impacts, and suggestions for reduction. Suggestions for reduction of predatory lending include increasing accountability of actors, both legally and by the industry itself bridging state and national jurisdictional gaps, and increasing fun ding for consumer education and neighborhood revitalization. Education was especially emphasized as a tool for preventing occurrences of predatory mortgage lending. not only in the form of pre-homebuyer education but especially in the form of financial education as a requirement in the public school s, beginning at a very young age.

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