KPI Benchmarks : Mortgage Loans Serviced per Mortgage Loan Servicing Employee
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 26
* Is High or Low Best: Higher is Better
Mortgage Loans Serviced per Mortgage Loan Servicing Employee
Mortgage Loans per Mortgage Loan Servicing Employee measures the average number of loans serviced (i.e., loans managed by the bank) by each individual loan servicing employee. While loans within a bank's (or mortgage lender, mortgage loan servicer) portfolio generate revenue through interest payments and related fees, overhead costs related to ongoing customer service (i.e., loan servicing) should be minimized to improve the profitability of the institution's loan portfolio. Typically, the customer service call center, or contact center, function consumes a large portion of the loan servicing budget. Several common improvements can be implemented in this area to both control costs and improve service levels, including call forecasting and staffing analysis, IVR or VRU implementation, analysis and reduction of hold times and after-call work and standardized call escalation processes. Poor loan data quality (i.e., missing lender information, etc.) can also diminish capacity and service levels within the loan servicing function.
The total number of mortgage loans in the company's loan servicing portfolio divided by the total number of mortgage loan servicing (includes all core loan servicing sub-functions) employees working for the company at the same point in time.
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 customer-facing associates so that other employees can focus on higher priority tasks
KPI Calculation Instructions Mortgage Loans Serviced per Mortgage Loan Servicing Employee?
Two numbers are used to calculate this KPI: (1) the total number of mortgage loans managed (i.e., loans serviced) by the company at a given point in time, and (2) the total number of employees working within the company’s mortgage loan servicing function at the same point in time. Total loan servicing employees 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. Only include mortgage loans in the numerator for this particular calculation. Do not include HELOC, personal or commercial loans in this calculation. Include loans currently in default or collections in the numerator for this calculation only if collections activities are being carried out by the institution being measured.
KPI Formula :
Total Number of Loans in Servicing Portfolio / Number of Loan Servicing Employees