Consumer Loan Applications per Consumer Loan Processing Employee

Consumer Loan Applications per Consumer Loan Processing Employee

KPI Details

Consumer Loan Applications per Consumer Loan Processing Employee measures the number of consumer loan applications processed in relation to the number of consumer loan processing employees working for the company at the same point in time. This is a strong indicator of financial and operational performance in the consumer loan market, as it allows financial institutions to assess current staffing levels against production and market demand. High values suggest efficient origination processes and consumer loan processing employees. Relatively low values can be indicative of negative, or poor performance throughout the origination process, which may be due to extensive or complex origination processes; poor training of consumer loan processing employees, inconsistent use of process job aids, or extended cycle times due to multiple touch points throughout the process (e.g., due to follow-ups with consumers who need to provide missing application information, etc.).

KPI Definition

The total number of consumer loan applications processed over a certain period of time divided by the number of consumer loan processing employees working for the bank. Consumer loan processing employees include administrative employees who prepare loan documentation prior to closing.

KPI Calculation Instructions Consumer Loan Applications per Consumer Loan Processing Employee?

Two numbers are used to calculate this KPI: (1) the total number of consumer loan applications processed over a certain period of time, and (2) the number of consumer loan processing employees working for the bank. The number of consumer loan applications processed includes all loans in the origination process. Include administrative consumer loan staff members in the denominator. Consumer lending support staff, sometimes referred to as loan processors or admins, are considered to be individuals who are 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. Do not include front-office sales, loan officers, borrowers, appraisers, inspectors, etc. in the denominator.

KPI Formula :

Total Number of Consumer Loan Applications Processed / Number of Consumer Loan Processing Employees