Mortgage Applications per Processor

Mortgage Applications per Processor

KPI Details

Mortgage Applications per Processor measures the productivity of individual mortgage processors, as well as the overall efficiency of mortgage application processes. As one would expect, lending institutions that collect the majority of their applications through the internet (i.e., borrowers complete application online or through a mobile application) will, naturally, achieve higher values for this KPI due to automation. Processing productivity must also be weighed against the quality (i.e., completeness, accuracy, etc.) of incoming application data and borrower documentation. A lack of transparent loan document checklists, complex or poorly communicated loan application forms and requirements and a lack of attention to detail amongst loan processors can greatly diminish application processing productivity and data quality.

KPI Definition

The total number of mortgage loan applications submitted by potential borrowers through all channels (e.g., phone, branch, web, etc.) over a certain period of time divided by the average number employees responsible for processing mortgage loan applications over the same period of time.

KPI Best Practices

• Develop standardized and easy to understand mortgage applications online to minimize manual work
• Create checklists to track documentation that has been received from borrowers
• Develop system that allows for easy request of documents from third parties (credit reports, title insurance, flood insurance, etc.)

KPI Calculation Instructions Mortgage Applications per Processor?

Two numbers are used to calculate this KPI: (1) the number of mortgage loan applications received by the institution over a given time period, and (2) the average number of employees working for the institution that are responsible for processing mortgage loan applications during that time. In the numerator for this calculation, count mortgage loan applications (including new mortgages and refinances) received through all companymanaged channels (i.e., phone, internet, mobile, in-branch, brokers, etc.). Loan processing employees are typically responsible for inputting loan application data, collecting borrower documentation, and communicating with loan officers and underwriters to facilitate origination. To calculate the average number of loan processors working for the company over a given time period, add the number of loan processors at the beginning of the measurement period and the number of loan processors at the end of the measurement period, and divide that number by 2.

KPI Formula :

Total Number of Mortgage Loan Applications Received / (Average Number of Mortgage Loan Processing Employees)