Benchmarking, historical trend analysis and peer data add meaning to lender metrics and empower leaders to gain a competitive edge
April 25, 2024 – Denver, Colo. – In its April Insights Report, STRATMOR Group delves into the importance of sophisticated data analysis and shows how benchmarking, historical trend analysis, and peer data can significantly impact a lender’s success.
In the April InFocus article, Senior Partner Nicole Yung outlines several critical strategies that enable mortgage lending executives to transform raw data into actionable insights to improve decision-making and give their organizations a competitive edge.
Yung discusses the challenges facing mortgage lending executives looking to make sense of the data they have at their disposal and what additional information they need to consistently make more informed decisions. In particular, executives need benchmarking data from credible sources to accurately determine whether the metrics they are tracking are as good or as bad as they believe.
Historical trend analysis and peer data, Yung writes, “add meaning to a particular lender’s metrics and can show them what impact their actions have on their ability to compete.”
STRATMOR believes that the most critical metrics lenders should track fall into five categories:
- Production: Lenders must keep a keen eye on their pipelines and actual loan closings.
- Profitability: Are lenders measuring all-in profits or direct contribution? How does that compare to previous time periods? Are changes driven by revenue or costs? These are critical questions to ask when assessing profitability.
- Productivity: While it is important to assess employees directly involved with loan production, it’s important to consider support and administrative FTEs as well.
- People: Average borrower and employee NPS and CSAT scores can help you determine if the customer or employee experience needs attention.
- Pain: This is a special category that can be analyzed by leveraging information from anywhere in the organization to uncover inter-departmental friction that impedes efficiency and productivity.
To learn more about how to use insights from industry data to develop strategies for navigating today’s market challenges, check out Yung’s article, “Amplify Your Vision to Illuminate Business Opportunities and Risks.”
In a second article in this month’s report, STRATMOR Customer Experience Director Mike Seminari explains how lenders must exceed a borrower’s expected level of service to gain coveted word-of-mouth referrals.
According to Seminari, “The key to delighting borrowers, and therefore to generating word-of-mouth referrals, is to operate in the world of the unexpected.”
For ideas on how to deliver unexpectedly good experiences that elicit unprompted word-of-mouth referrals, read Seminari’s Customer Experience Tip, “An LO’s Guide to Creating Unexpected Delight for Borrowers.”
Click here to read the April 2024 edition of STRATMOR’s Insights Report.
About STRATMOR Group
STRATMOR Group is a leading mortgage industry advisory firm that provides a range of programs and services designed to counsel lender CEOs and senior executives. STRATMOR serves more than 250 companies annually, providing strategies that increase growth and improve profitability in sales, marketing, technology, operations and mergers and acquisitions. The company leverages comprehensive, propriety data and key insights gained through extensive experience in the mortgage industry. STRATMOR is well known for its financial models and its collaboration with the Mortgage Bankers Association in the PGR: MBA and STRATMOR Peer Group Roundtables Program. Find out more about STRATMOR on its website at www.stratmorgroup.com.