KPI Benchmarks : Mortgages Closed per Loan Officer
- Benchmark Range
- Benchmark Average
- Benchmark Sample Size (n) 59
* Is High or Low Best: Higher is Better
Mortgages Closed per Loan Officer
Mortgages Closed per Loan Officer measures the average productivity (i.e., volume of loans closed per loan officer) of individual loan officers working for the lending institution. In all cases, a high value should be sought after for this particular metric, or KPI. Highly productive loan officers, and the organization's for which they work, have common qualities: standardized processes for lead generation and prospecting, a relatively small amount of available work time devoted to lower-value tasks (e.g., loan document collection, application processing, appointment setting, etc.), and highly proactive communication with potential borrowers are prevalent characteristics of high performing loan officers and sales organizations. Relatively high values for loan production should also be weighted with a few factors, including loan quality (i.e., credit-worthiness of borrowers, etc.), average loan amount, and the total dollar value of loan production (i.e., value of loans closed), and loan pull-through rates should be analyzed alongside this KPI to produce a full picture of loan officer 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 officers, or originators, working for the company over the same time period.
KPI Calculation Instructions Mortgages Closed per Loan Officer?
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 officers, or originators 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. Mortgage loan officers are typically responsible for attracting and developing new business (i.e., sales and business development), and guiding borrowers through the loan origination process. To calculate the average number of loan officers working for the company over a given time period, add the number of loan officers at the beginning of the measurement period and the number of loan officers at the end of the measurement period, and divide that number by 2. Include only mortgage loans and mortgage loan officers in this calculation.
KPI Formula :
Total Number of Mortgage Loans Closed / (Average Number of Mortgage Loan Officers)