Cost per Commercial Loan Origination

Benchmarking Report

Cost per Commercial Loan Origination

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Cost per Commercial Loan Origination. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Cost per Commercial Loan Origination?

The total commercial loan origination and fulfillment-related expense incurred by the lending institution divided by the number of commercial loans closed and funded over the same period of time. Total commercial loan origination and fulfillment expense should include fully-loaded labor costs (salary, benefits, bonuses, etc.), as well as other overhead costs such as occupancy, technology and vendor fees.

Why should Cost per Commercial Loan Origination be measured?

Cost per Commercial Loan Origination measures the total commercial loan origination and fulfillment-related expense incurred by the lending institution divided by the number of commercial loans closed and funded over the same period of time. This is a crucial measure in understanding operational performance and the alignment with industry benchmarks for commercial lending costs. High values for this metric can be indicative of inefficient processing, which may be due to extended cycle times for loan origination (i.e. low-value processes, poor instructions concerning what is needed from the customer in order to process the loan, multiple touch points and customer follow-ups, etc.), sub-par loan officer performance, inconsistent training across lending teams for loan origination processing, and high overhead costs.


Download a Sample Cost per Commercial Loan Origination

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