Origination Revenue per Mortgage

Metric Details & Benchmarking Report Download

KPI Benchmarks : Origination Revenue per Mortgage

  • Benchmark Range
  • Benchmark Average
  • Benchmark Sample Size (n) 26

* Is High or Low Best: Higher is Better

Origination Revenue per Mortgage

KPI Details

Origination Revenue per Mortgage measures the total revenue earned by the lending institution for each individual loan originated over a given time. Lower than average revenue per loan may indicate several things (some of which may be out of the control of the lending institution): a low average value of loans originated, origination fees that are below industry averages, and/or poor lending strategies can lead to subpar loan production revenue. Loan origination fees typically vary based on the dollar value of the loan (i.e., a $40,000 loan will have a higher fee rate applied to it than a $400,000 loan).

KPI Definition

The total dollar amount of mortgage loan origination revenue earned (origination fees, broker fee income, underwriting & processing fees) by the lending institution divided by the number of mortgage loans originated by the institution over the same period of time.

KPI Best Practices

  • Superior customer service to justify higher loan origination fees
  • Perform peer research periodically to know what competitors are charging for loan origination fees
  • Create referral rewards for borrowers who refer friends/family to the institution

KPI Calculation Instructions Origination Revenue per Mortgage?

Two numbers are used to calculate this KPI: (1) the total amount of revenue generated through mortgage loan origination activities over a given time period, and (2) the total number of mortgage loans originated by the institution over the same period of time. Loan revenue typically includes three major components: loan origination fees (i.e., a percentage of the total loan amount, typically 0.5% - 1%),underwriting fees, and any other revenue/fees earned through loan processing or administration. The denominator should include all mortgage loans originated (closed) by the institution during the measurement period. Do not include warehousing or secondary market income in this calculation. Do not include loan officer commissions in the numerator for this calculation. Do not include other loans such as commercial loans or personal loans in this calculation.

KPI Formula :

Total Mortgage Loan Origination Revenue / Total Number of Mortgage Loans Originated

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