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Top 10 Mistakes Of Underperforming Lenders: #1– #3

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Our webinar recently featured industry veteran Joe Garrett discussing the Top 10 Mistakes of Underperforming Mortgage Lenders. Here are the top 3:

1.)    They do not measure everything:

You can’t manage what you do not measure is an old yet accurate management adage. Improving operational performance is very difficult if managers are not measuring to determine what is working and what is not working. Underperforming lenders frequently fail to measure or fail to measure enough. In borrowing a page from “Money Ball”, by measuring “everything” within your organization and the markets in which you compete you will be better positioned to manage for improvement and to identify market trends before your competition.

2.)    They do not know their Cost-to-Originate

The ONE THING that mortgage lenders have most control over is their Cost-To-Originate.  Mortgage lenders really don’t have much control of their volume or their revenues.  Every single one of the top-performing lenders knows their true Cost-To-Originate down to the penny.  Calculating your cost-to-originate should include not only the obvious – originators, underwriters, processors-, but all your operational costs – HR, IT, Secondary, Marketing, etc.  The underperforming lenders don’t measure their Cost-To-Originate or measure it inaccurately.

3.)    They keep low-producing Loan Officers

A common mistake of underperforming lenders is retaining underperforming loan officers, possibly a result of Mistake #1 and their failure to measure everything. Performance levels, specifically of revenue-generating employees, should be tracked and underperforming employees should be mentored for improvement, reassigned, or let go.

See all 10 Mistakes HERE and join us on March 29th for our next free webinar Registration Form

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