When a company seeks the ideal mortgage loan originator (MLO), it's likely the MLO is searching for their perfect fit too—an exceptional rate sheet, a reliable lock desk, and a top-tier secondary marketing team. But perhaps what both truly need is a symbiotic relationship that fosters mutual success. After all, mutual success drives a higher (FPC) and long-term growth.
A well-designed financial budget does more than allocates resources—it highlights truths, exposes challenges, resets priorities, and encourages behavioral shifts. Similarly, MLO scorecards can become a powerful planning tool. Organized by product, channel, loan purpose, and time bands, this type of scorecard illuminates the MLO’s strengths and areas for improvement. It also reveals opportunities for the organization to adjust its strategies, amplifying strengths and addressing weaknesses across the board—lifting every boat in the harbor.
To measure performance effectively, consider these actionable KPIs for MLOs:
- [Volume Closed x (Final Profit Margin Less Extension Costs)] / [Volume Locked x Initial Profit Margin].
- Percent Closed w/ Original Terms DIVIDED BY Percent Closed. “Original Terms” here would include the original lock expiration date.
By focusing on key insights, companies and MLOs alike can collaborate to achieve exceptional results, driven by data and guided by shared goals.
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