Do you want to improve the performance of your loan officers? Are you ready to improve the overall productivity of your mortgage brokerage? If so, you need to start using metrics to assess the overall performance of your mortgage team.
Metrics are quantifiable numbers that are used to assess the success or failure of certain processes within your brokerage business. In the mortgage industry, metrics are often referred to as Key Performance Indicators (KPIs).
Below we outline which metrics are most important to the success of your business and examine the best ways to accurately measure these statistics.
Which metrics are most important?
While it is certainly important to track various metrics about your mortgage broker's performance, not all data is created equal. Some KPIs are more closely related to the success of your mortgage team than others.
Some of the most useful metrics to examine are:
Cycle time is one of the most important metrics to keep track of. This is calculated by dividing the total number of days from application to funding by the number of loans funded during that period.
The cycle time is a strong indicator of the overall efficiency of your brokerage. By integrating modern software such as the BNtouch Team CRM, you should reduce your overall cycle time.
Keeping track of cycle time is also a great way to improve your broker's reputation. While virtually every mortgage broker claims to process loans "quickly", you can back up that claim by calculating the cycle time with hard data.
You can even incorporate this information into an advertising campaign by showing that "our team completes loans 25% faster than the average mortgage broker".
Another important metric that every mortgage broker should track is conversion rate. This KPI is calculated by dividing the amount of loans funded by the total number of applications received in the same period.
If you have a low conversion rate, there is a good chance your team is wasting resources on at least one facet of your business. The conversion rates measure the overall health of your brokerage business and should help you achieve sustainable growth in the mortgage industry.
Every loan officer should keep track of their approval rates. The approval rate is determined by dividing the number of approved applications by the number of applications submitted.
If your brokerage firm's approval rating is low, it means your team is wasting resources on dead-end applicants.
By implementing modern CRM software, you can speed up the document capture and review process to minimize waste. These analytical tools can help you quickly identify unqualified borrowers and focus your attention on stronger applicants.
Solutions from BNTouch
If your mortgage broker is not making good use of their performance metrics, BNTouch can help. We offer mortgage brokers and their teams access to the latest CRM software and reporting tools. Our affordable tools can optimize efficiency, improve conversion rates, and make your everyday life less stressful.
If you'd like to learn more about BNTouch, schedule a free demo today!