Commercial Loan Underwriting Decision to Close Cycle Time

Commercial Loan Underwriting Decision to Close Cycle Time

KPI Details

Commercial Loan Underwriting Decision to Close Cycle Time measures the number of calendar days required to close and fund a commercial loan after the underwriting decision has been made, from the time of the adjudication to the time that the loan is closed and funded. This is an important measure in understanding the performance of Loan Support Employees in coordinating origination efforts with loan officers and how this correlates with customer expectations. Extended cycle times can occur due to multiple, redundant or low value touch points within the process, inconsistent use of process guides or training materials, and unclear communication between loan support, loan officers and borrowers.

KPI Definition

The number of calendar days required to close and fund a commercial loan after the underwriting decision has been made, from the time the adjudication decision is made until when the loan has been closed and funded.

KPI Best Practices

• Establish service levels for loan closing times to add transparency to borrowers and accountability to employees
• Clearly communicate info and documents needed from customers for applications and provide them with regular status updates
• Ensure that all vital loan documents/resources are stored in an easily accessible, centralized online location

KPI Calculation Instructions Commercial Loan Underwriting Decision to Close Cycle Time?

Two numbers are used to calculate this KPI: (1) the number of calendar days required to close and fund a commercial loan after the underwriting decision has been made (from the time the adjudication decision is made until when the loan has been closed and funded), and (2) the total number of commercial loans received. Include business days as well as weekends in the numerator. Since the closing and funding dates may not be the same, use whichever date is later for this calculation.

KPI Formula :

(Sum of Calendar Days Required to Close and Fund Commercial Loans After Underwriting Decision) / Total Number of Commercial Loans Received