Mortgage Applications per Underwriter

Mortgage Applications per Underwriter

KPI Details

Mortgage Applications per Underwriter measures the overall productivity of the mortgage underwriting function, as well as methods in place to improve loan package data quality and reduce the volume of low quality loans originated by the organization. Relatively low underwriting productivity (i.e., each underwriter reviews a lower than average number of applications) can be attributed to several factors: missing borrower information or data, under-developed (or non-existent) loan auto-decision capabilities and lack of application data quality standards can all extend underwriting touch times. Each of these factors increase the amount of time (and cost) required to underwrite a single loan, and also negatively impact customer service levels. It should also be noted that high-dollar loans may take longer to underwrite than others.

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 mortgage loan underwriting employees working for the company over the same period of time.

KPI Best Practices

• Develop a triage process for underwriting loans by sending more complex applications to experienced underwriters
• Create checklists to track documentation that has been received from borrowers
• Regularly evaluate underwriting thresholds, rules and standards to identify opportunities for further automation

KPI Calculation Instructions Mortgage Applications per Underwriter?

Two numbers are used to calculate this KPI: (1) the number of mortgage loan applications received by the underwriting function over a given time period, and (2) the average number of employees working for the institution that are responsible for underwriting mortgage loans during that time. Include only mortgage loan underwriters and loan applications (including new mortgages and refinances) in this calculation. Do not include underwriting support personnel in the denominator for this calculation (i.e., include only underwriters who make decisions on loan applications). To calculate the average number of mortgage loan underwriters working for the company over a given time period, add the number of underwriters at the beginning of the measurement period and the number of underwriters at the end of the measurement period, and divide that number by 2.

KPI Formula :

Total Number of Mortgage Loan Applications Received by Underwriting / (Average Number of Mortgage Loan Underwriters)