Mortgage Production per Loan Officer

Mortgage Production per Loan Officer

KPI Details

Mortgage Loan Production per Loan Officer measures the average dollar amount of new mortgages originated by a single Loan Officer over a given period of time. This KPI, along with the total number of mortgages originated per Loan Officer, is an extremely important measure of Loan Officer productivity and an overall indication of the lending institution's profitability. There are several other leading indicators that can help to identify reasons for Loan Officer over/under-performance, including loan closing cycle times, pull-through rates and application volumes. Factors that can contribute to low loan production include complex mortgage application and underwriting processes, poor inbound lead generation tactics, a lack of transparency within the origination process (e.g., borrower is not aware of where their loan stands within the process at any given time), improper pre-approval processes, and interest rates and/or origination fees that are above industry standards.

KPI Definition

The total dollar value (i.e., principal loan amount) of mortgage loans originated by the organization over a certain period of time divided by the total number of mortgage Loan Officers, or Loan Originators, working for the institution over the same time period.

KPI Calculation Instructions Mortgage Production per Loan Officer?

Two numbers are used to calculate this KPI: (1) the total dollar amount of new mortgages originated (i.e., closed and funded) by mortgage loan officers over a given time period, and (2) the average number of Loan Officers working for the institution over the same time period. Use the sum of initial principal loan balance for new mortgages originated by the institution in the numerator for this calculation. A closed loan is considered a mortgage that has been funded by the institution; do not include loans that have not yet been formally closed in this calculation. Include only mortgage Loan Officers (sometimes referred to as Loan Originators) in the denominator for this calculation (i.e., do not include Loan Processors, Underwriters or support staff). Do not include refinances or home equity lines of credit in this calculation.

KPI Formula :

(Sum of Loan Amounts for New Mortgages Originated) / (Average Number of Mortgage Loan Officers)