Commercial Loans Outstanding ($) per Loan Servicing Employee

Commercial Loans Outstanding ($) per Loan Servicing Employee

KPI Details

Commercial Loans Outstanding ($) per Loan Servicing Employee measures the total value of all unpaid, interest-bearing commercial loan balances in relation to all loan servicing employees working for the bank. Higher values of this metric are preferred and illustrate high performance of the commercial loan servicing organization, and can illustrate the strong profitability and financial health of an institution (looking at this metric in conjunction with quality of outstanding loans). Relatively low values for this metric are typically related to a few common factors, including overstaffing, lengthened cycle times due to inefficient processing; high amounts of process touch points (typically due to application errors, missing documentation and incomplete applications); a high number of tasks that add little/no value to commercial loan processing, and sub-par commercial loan servicing employee training and performance.

KPI Definition

The total dollar amount of unpaid, interest-bearing commercial loan balances managed by the company divided by the number of loan servicing employees working for the bank. Loan servicing employees include all employees working with customers regarding loans, including call centers, escrow management, collateral management, investor relations, etc.

KPI Best Practices

• Set time limits for how long the Servicing function should spend on foreclosure and loss mitigation cases
• Prioritize loans based on outstanding amount, likelihood of delinquency, days past due, etc.
• Organize a dedicated group of customerfacing associates so that other employees can focus on higher priority tasks

KPI Calculation Instructions Commercial Loans Outstanding ($) per Loan Servicing Employee?

Two numbers are used to calculate this KPI: (1) the total dollar amount of unpaid, interest-bearing commercial loan balances managed by the company, and (2) the number of commercial loan servicing employees working for the bank. Dollar amounts of non-performing (i.e. not accruing interest) loans should not be included in the numerator. The number of commercial loan servicing employees working for the institution should include staff working within the call center, escrow management, collateral management, loan boarding, investor relations, loss mitigation, collections/defaults and payment processing/modification functions. The total dollar amount of loans managed includes both principal and interest on loans.

KPI Formula :

Total Dollar Amount of Unpaid Commercial Loans / Number of Commercial Loan Servicing Employees