{"id":3478,"date":"2020-09-09T14:38:47","date_gmt":"2020-09-09T19:38:47","guid":{"rendered":"https:\/\/opsdog.com\/resources\/?p=3478"},"modified":"2020-09-09T14:39:07","modified_gmt":"2020-09-09T19:39:07","slug":"common-performance-metrics-measure-loan-employee-productivity","status":"publish","type":"post","link":"https:\/\/opsdog.com\/resources\/common-performance-metrics-measure-loan-employee-productivity\/","title":{"rendered":"Common Performance Metrics to Measure Loan Employee Productivity"},"content":{"rendered":"

Once the loan officer closes the deal\u2014whether it\u2019s a residential mortgage for a first-time home buyer, a commercial real estate loan for a sophisticated investor, or an automobile loan for a long-time customer\u2014loan employees usher the loan from origination to closing and servicing. The productively and efficiency of these employees makes a big difference in both lender profitability and borrower happiness. One of the best ways to increase the proficiency of loan officers is through the use of loan employee performance metrics.<\/p>\n

What are Loan Employee Performance Metrics? <\/strong><\/p>\n

Loan employees can be defined as employees that often work in the back office and are responsible for a wide variety of tasks. Those in origination focus on compiling the documentation and information needed for underwriting and eventually funding and closing of the loan. They are often in contact with borrowers, even sometimes handholding borrowers through the origination process.<\/p>\n

In servicing, loan employees manage the health of the loan portfolio such as identifying loans that are in danger of default, handling payments and answering borrower questions. Employees in both areas must also follow stringent regulatory guidelines.<\/p>\n

Loan employee performance metrics can be defined as metrics or key performance indicators (KPIs) that can measure and track both back office employee and lender efficiency throughout all aspects of lending operations.<\/p>\n

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Measuring loan employee performance involves analyzing both the human aspect\u2014how well the employee is able to do his or her job\u2014and your processes and procedures. A top-performing employee will not be able to work to their potential if they are forced to work on outdated technology, reenter data, or have to constantly reach out to borrowers to submit required paperwork. For example, having an e-signature solution so employees don\u2019t have to present borrowers with hard-copy documents will save employees valuable time that they could spend on more value-added tasks.<\/p>\n

How to Use Loan Employee Performance Metrics <\/strong><\/p>\n

Comparing loan employee KPIs with other lenders allows you to determine if your organization is more or less productive or efficient than other lenders. Once you have a baseline metric, you can track the effectiveness of any changes you decide to make.<\/p>\n

What these loan employee performance metrics won\u2019t reveal is the root cause of low (or high) performance. You\u2019ll need to evaluate everything from your hiring process to how easy it is to fully complete your loan application to how well you communicate with third-party providers such as appraisers, insurers, title companies, and the like.<\/p>\n

Explore all possible causes of low performance. Here are a few questions to get you thinking:<\/p>\n