Commercial Loans Closed per Commercial Loan Processing Employee

Commercial Loans Closed per Commercial Loan Processing Employee

KPI Details

Commercial Loans Closed per Commercial Loan Processing Employee measures the total number of commercial loans closed in relation to the number of employees processing loans at the same point in time. This metric indicates commercial loan production levels and is important in understanding capacity and staffing requirements for commercial lending. Low numbers of commercial loans closed per commercial loan processing employee (i.e. low levels of loan closing production) could be an indication of a variety of issues related to commercial loan performance, including intricate or complex commercial loan processes; a high number of customer follow-ups for incomplete or missing information on commercial loan applications that extends processing cycle times; a lack of communication between commercial loan officers and commercial loan processors (and other parties that may be involved); and/or inconsistent training or job aid materials for expedited commercial loan closing processing.

KPI Definition

The total number of commercial loans closed over a certain period of time divided by the number of employees processing commercial loans. Commercial loan processing employees perform administrative tasks to compile loan packages prior to loan close.

KPI Best Practices

• High data input quality and validation to minimize instances of errors
• Create checklists to track documentation that has been received from borrowers
• Develop system that allows for easy request of documents from third parties (credit reports, bank statements, etc.)

KPI Calculation Instructions Commercial Loans Closed per Commercial Loan Processing Employee?

Two numbers are used to calculate this KPI: (1) the total number of commercial loans closed over a certain period of time, and (2) the number of employees processing commercial loans. Closed commercial loans are considered to be loans that have not only been agreed upon by the lender and borrower, but the paperwork has also been finalized and signed (i.e. at this point in time, the borrower has become fully responsible for repaying the lender). Closed loans do not include all loans that have been funded, as some loans that are funded by the lender may not yet be closed (i.e. typically due to different fund and close dates). Include the total amount of administrative commercial loan staff members in the denominator. Commercial lending support staff, sometimes referred to as loan processors or admins, are considered to be individuals responsible for preparing loan packages, ensuring that all required documentation is present, coordinating origination activities with third parties, and conducting pre and post-close loan documentation reviews. This staff does not include front-office sales, loan officers, borrowers, appraisers, inspectors, etc.

KPI Formula :

Total Number of Commercial Loans Closed / Number of Employees Processing Commercial Loans