Sales and Origination KPIs

• Application Volume: The number of mortgage applications received over a specific period. Tracks demand and workload.
• Conversion Rate: Percentage of mortgage applications that result in funded loans. Shows the effectiveness of the sales process and underwriting.
• Pull-Through Rate: Percentage of pre-approved applicants who end up closing on a mortgage loan. A high rate indicates effective sales efforts.
• Average Cycle Time: Average time from application to loan closing. Shorter cycle times improve borrower experience and your ability to handle more volume.
• Loan Officer Productivity: Track the number of loans funded, revenue generated, etc., per loan officer.

Profitability KPIs

• Average Loan Size: Average dollar amount of mortgages originated. Larger loan sizes often mean higher revenue.
• Cost per Loan Originated: Average costs involved in processing, underwriting, and closing a mortgage loan. Helps manage expenses.
• Profit per Loan: Revenue earned per loan minus the costs of origination and funding. This is a key measure of individual loan profitability.
• Gain on Sale Margin: Profit gained when selling originated loans on the secondary market.

Customer Experience KPIs

• Net Promoter Score (NPS): Measures the likelihood of borrowers recommending your mortgage services. High NPS reflects strong client relationships.
• Customer Satisfaction Surveys (CSAT): Track satisfaction with the application process, communication, interest rates, etc. Helps identify improvement areas.
• Borrower Reviews: Monitor borrower feedback on online platforms to understand customer sentiment.

Underwriting and Risk KPIs

• Loan Approval Rate: Percentage of submitted applications that get approved. This reflects lending guidelines and risk tolerance.
• Loan-to-Value (LTV) Ratio: Average LTV of funded loans. Lower ratios generally suggest less risky lending.
• Debt-to-Income (DTI) Ratio: Average DTI of borrowers. Helps assess affordability and risk.
• Default Rate: Percentage of loans that go into default. Lower rates indicate better underwriting quality.

Operational KPIs

• Application Turnaround Time: Time from application submission to a loan decision (approval or denial). Faster decisions enhance the customer experience.
• Underwriting Errors: Track the frequency and severity of mistakes in the underwriting process. High error rates can lead to losses.
• Number of Conditions per Loan: The average number of conditions borrowers have to meet before closing. More conditions can slow down the process.

Additional Considerations:

• Compliance KPIs: Track adherence to regulatory guidelines for mortgage lending and fair lending practices.
• Market Share: Measure your bank’s percentage of mortgage loans in a specific market or region.