Mortgages Closed per Secondary Employee

Mortgages Closed per Secondary Employee

KPI Details

Mortgages Closed per Secondary Employee measures the average number of mortgage loans funded by the lending institution relative to the number of secondary loan marketing, reporting and sales employees. This metric is a good measure of the workload placed upon, and the productivity of, secondary mortgage employees. These employees are tasked with preparing, pricing, marketing and selling mortgages originated by the institution to investors (i.e., other institutions that purchase mortgage loans to service and/or re-sell them). A relatively low value for this KPI may indicate that the bank's secondary lending function is overstaffed, and/or bogged down with a high volume of manual work (e.g., data entry, etc.), error correction or missing loan documentation. A major driver of low-value work within the secondary lending function is incomplete or missing information regarding recently closed loans (i.e., poor inbound data quality).

KPI Definition

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 secondary mortgage lending market employees working for the company over the same time period.

KPI Best Practices

• Accurate forecasting models to predict number of loans originated as well as mortgage sales demand from investors
• Monitor the source of sales leads to allocate time to most effective channels
• Standardize data inputs and audit reporting processes regularly to minimize rework

KPI Calculation Instructions Mortgages Closed per Secondary Employee?

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 secondary mortgage loan sales, marketing and reporting employees working for the institution over the same period of time. Secondary market employees are typically responsible for auditing the quality of loan data, developing reports for use in the sale of loans, interfacing with parties who are looking to purchase loans and preparing those loans for sale/transfer to another institution. 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. To calculate the average number of secondary market employees working for the company 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 and secondary mortgage market employees in this calculation.

KPI Formula :

Total Number of Mortgage Loans Closed / (Average Number of Secondary Marketing & Sales Mortgage Employees)