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April 25, 2019

Focus on Productivity

"Just a small increase in Productivity yields significant increases in profitability."

When it comes to lender profitability, nothing matters more than Productivity, according to EVP of Marketing, Dan Green. And he should know.

Dan has been leading our annual Mortgage Lender Benchmarking Study for the past 7 years. His analysis of the data indicates that there are only five Key Performance Indicators (KPIs) that a lender needs to monitor in order to be successful enough to be considered a high performance lender. The proper management of these KPIs will allow any lender to achieve uncommon success.

Chief among these is productivity. In fact, Dan writes on his LinkedIn blog:

“Productivity...the measure of closed loans per mortgage production employee per the primary profit driver for every lender we studied. Just a small increase in Productivity yields significant increases in profitability. In fact, it’s for this reason that we now believe that Productivity is the single most important metric in any mortgage lending operation. Get this one right and everything else falls into line.

According to our 2018 Benchmarking Study, the average Productivity for lenders was 3.31 loans per employee. Part of the reason so many lenders are seeing such low Productivity numbers is that they are not utilizing the full power of the automation they already own.

To find out how to improve your Productivity, download our Benchmarking Whitepaper. After seven years of study, we can look at any lender’s Productivity and have a very good idea of how profitable the institution is.