What is Mortgage Lending?
Mortgage Lending is a service provided by banks or financial firms that focus on originating and servicing property loans for retail (i.e., individuals or families) clients. Mortgage lenders assess borrower eligibility before accepting any loans so as to mitigate potential defaults. Even though failure to repay mortgage loans allows the lender to recover the property from the debtor, the foreclosure process can be very costly for the lender. Activities carried out within a typical mortgage banking, or mortgage lending function include application processing, borrower data collection and management (W-2 forms, tax returns, etc.), property appraisals, credit reporting, loan underwriting, collateral and account management, foreclosure/loan default management, customer service, and secondary market mortgage loan sales.
Mortgage Lending Benchmarking ReportBenchmarking Report Bundle
Amount Collected per Collections EmployeeBenchmarking Report
Mortgage Lending KPI EncyclopediaKPI Encyclopedia
Mortgage Lending Best Practices GuideBest Practices Guide
Mortgage Lending Organization Chart TemplateOrg Chart Template
Loan OriginationWorkflow Template
Amount Collected per Collections Employee
The total dollar amount collected by the Collections Department, or agency, over a certain period of time divided by the average number of collections employees (including collectors, manage...
KPI Type : Productivity
Formula : Average New Collections Account Size, Amount Collected per Account, Collections Connect Rate, Collections Liquidation Rate
KPI Benchmark Range : $113.5K-$348.9K
Mortgage Loans Serviced per Mortgage Loan Servicing Employee
The total number of mortgage loans in the company's loan servicing portfolio divided by the total number of mortgage loan servicing (includes all core loan servicing sub-functions) employees...
KPI Type : Productivity
Formula : Total Number of Loans in Servicing Portfolio / Number of Loan Servicing Employees
KPI Benchmark Range : 398 - 2,289
A typical mortgage banking, or mortgage lending, organization is composed of several common sub-functions, or teams, that work together to attract potential borrowers, assess their credit-worthiness, and originate mortgage loans. Mortgage lenders also provide customer service for existing borrowers, and may purchase or sell loans on the secondary market. Browse our mortgage organization chart page to learn about the roles and responsibilities of each major function. Then, download our org chart template (PDF, Visio, PPT) to further understand mortgage lending organizational structure, and support operational improvement efforts.
Check out our mortgage lending best practices page to view selected descriptions of work methods that have been proven to produce better results (as compared to other, similar methods). Want more? Download our Mortgage Lending best practices guide, which provides a healthy selection of valuable best practices that can be incorporated to improve mortgage lending operations. There might not be only one "best" way to perform every task. However, there is always a "better" way.