* Is High or Low Best: Higher is Better
Mortgages Closed per Closer measures the average productivity (i.e., volume per employee) of, and workload placed upon, each individual loan closing employee. Loan closing employees are typically responsible for preparing all loan documentation (e.g., borrower credit information, appraisals, tax documents, etc.) for closing, as well as prepping loan documentation for loan servicing, or sale to investors. A relatively high value for this metric should be sought after, which would indicate that the lending institution is appropriately staffed within the loan closing function. This should, however, be weighed against various work standards (e.g., error rates, missing loan documentation, etc.) to ensure that the loan closer work quality is not suffering due to extreme work volumes. Items such as standardized loan documentation checklists and automation of highly manual, repetitive tasks (e.g., data entry, etc.) can improve loan closing productivity and work quality.
The total number of mortgage loans closed (i.e., funded) by the company over a certain period of time divided by the average number of mortgage loan closers working for the company over the same time period.
Two numbers are used to calculate this KPI: (1) the total number of mortgage loans closed by the lending institution over a given time period, and (2) the average number of mortgage loan closing employees working for the institution over the same period of time. A closed loan is considered a mortgage loan that has been funded by the institution; do not include loans that have not yet been formally closed in the numerator for this calculation. Loan closing employees should include individuals whose primary job function includes preparing loan documentation and various other materials for the closing table, and then preparing similar materials for pass-off to the loan servicing function, or for the sale of the loan to investors. To calculate the average number of loan closing employees over a given time period, add the number of employees at the beginning of the measurement period and the number of employees at the end of the measurement period, and divide that number by 2. Include only mortgage loans in this calculation.
Total Number of Mortgage Loans Closed / (Average Number of Mortgage Loan Closing Employees)
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