8 Important Mortgage KPIs and How to Track Them

The mortgage industry is consistently changing and, to remain competitive, mortgage lenders must constantly adjust their marketing strategies in order to respond to the ever-changing interest rates and remain one step ahead of their competitors. One effective way to do this is by monitoring key performance indicators (KPIs). But what mortgage industry KPIs should you be monitoring and why? Here we take a closer look at some of the key KPIs you should be consistently monitoring to best adjust your strategies.

What are KPIs?

Key performance indicators, or KPIs, are defined as quantifiable measures used to evaluate the success or progress of an individual or business toward meeting key performance objectives or another end result. Tracking KPIs offers you insight into what strategic changes may be necessary in order to achieve your goals.

What are mortgage lending KPIs?

Mortgage KPIs measure the effectiveness and efficiency of your current loan process, including everything from initial contact to closing and beyond. Tracking KPIs allows you to see where your performance currently stands and how your business is trending, as well as provides insight into areas where you may need to implement change.

Why KPI tracking is important?

When your business performance is not achieving your desired goals, it can often be difficult to pinpoint exactly what isn’t working and why. Implementing clearly defined KPIs can provide critical information into the relationship between individual performance and the success of different aspects of the business.
For example, if lender performance has dropped from one quarter to the next despite loan application volume remaining consistent, what exactly is contributing to this drop in financial performance? By examining specific KPIs, such as abandoned loan applications and average cycle times, you will be able to see areas where an application processing delay is occurring.

Essential KPIs you should be tracking

To better determine which KPIs you should be tracking, it is essential to review your specific organization goals. Once you determine these goals, you can better identify which KPIs will help provide insight that will help you reach those established goals. Here we look at some of the key KPIs for the mortgage industry.

1. Pull-through rate

The pull-through rate KPI measures the efficiency of your pipeline. To calculate this metric, you divide your total funded loans by the number of applications submitted for the defined time period, such as monthly. This metric offers insight into the overall health of your operation, evaluating things such as your workflow efficiency, application quality, customer service, interest rate competitiveness, and how well your target market profile is actually working to achieve the results you are looking for. This specific KPI is not designed to single out a specific problem, but rather to evaluate your system as a whole and identify if there may be a potential problem.

2. Average cycle time

The average cycle time KPI is a fantastic metric for measuring your overall efficiency, with lower cycle times representing a more efficient process. To determine this metric, you divide the sum of days from application to funding on all loans by the number of total loans funded.

3. Average mortgage loan value

The average mortgage loan value KPI is a metric that provides information on loan profitability. In general, the workload required for a conforming conventional loan is not much different for a loan under $200,000 than it is for one over $500,000. However, the amount of revenue your company can generate from these two specific loans can be very different. To determine your average mortgage loan volume, you divide your total loan volume originated by the number of loans funded for the same period. The closer your average mortgage loan volume is to the conforming limit, the higher your profits are likely to be.

4. Application approval rate

The application approval rate KPI can provide valuable insight into two specific metrics: client acquisition and loan application workflow. When your application approval rate is low it can either mean you have a disruption in your workflow (problems with document gathering or a problem in the application review process) or you are not connecting with your ideal customer profile, but rather with unqualified applicants. To determine this KPI, you divide the number of approved applicants by the number of submitted applications.

5. Abandoned loan rate

The abandoned loan rate looks at those loans that receive approval but are never funded, often indicating potential post-application process problems. When a borrower applies for and is approved for a mortgage but never follows through, you have to question what is causing this. In many cases, this can indicate fluctuations in the interest rate competitiveness of your agency, problems with communication, or not following through with a client. To determine this KPI, you divide the number of approved applications not funded by the number of approved applications during the same time frame.

6. Customer acquisition cost

The customer acquisition cost KPI looks at how much it costs to acquire a customer in relation to their lifetime value to the company. To determine this metric, you divide your total cost of sales and marketing by the total number of new customers.

7. Cost per unit originated

The cost per unit originated KPI helps measure the efficiency of your business when it comes to operating expenses, cycle times, and your pull-through rates and how they are affecting your profitability. To determine this metric, you divide your total business expenses by the number of loans funded for the same period of time. Excess overhead expenses, such as salaries, can greatly affect your profit margin. Keeping your costs in line with your expected performance helps to ensure you maintain your desired profit.

8. Incomplete application rate

The incomplete application rate looks at loan applications that are closed for incompleteness. This can be due to several factors, such as an incomplete application or missing documents. When these occur, you have to ask yourself a number of questions. Are you targeting the right customer profile and is your target audience really in the position to close on a loan? Are you communicating the necessary steps and information needed to complete an application? To determine the KPI metric, you divide the number of applications closed for incompleteness by the number of applications received during the same time period.

Tracking KPIs provides valuable insight

Tracking the right KPIs can help you gain valuable insight into what is and is not working within your operation. Using these valuable tools can help you adjust your strategies to better boost lead generation, client acquisition, and your rate of loan closures.

At Good Vibe Squad, we understand the importance of understanding your client profile and generating leads that fit that profile. With KPIs, you can gain a better understanding of this client profile and tap into our Unfair Advantage™ program for a boost in your lead generation. To learn more about how the team at Good Vibe Squad can help improve your KPIs and lead generation, schedule a call today.

8 Important Mortgage KPIs and How to Track Them is republished from: https://goodvibesquad.com

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Must-Have Loan Officer Marketing Tools

The mortgage industry is a highly competitive market and for loan officers to stay ahead of their competition, they must have the right mortgage marketing tools in place to maximize their exposure and market themselves effectively. But which loan officer tools are going to be your most effective? How can you boost your mortgage marketing to effectively keep new clients coming through your door?

The 4Ps of marketing

To better understand how and why specific marketing tools can really make a difference, it is important to take a step back to the basics and clearly understand the 4Ps of marketing: product, place, price, and promotion.

Product

Creating an effective marketing strategy begins with a comprehensive understanding of the products (loans) you offer. Who needs these loans and why? Do you offer a wide range of loans that will meet the needs of most potential buyers?

As a loan officer, loans are not your only product. You are also promoting yourself, so you must consider how you stand out above the competition. Why should a borrower choose you over your competition?

Place

Place refers to where a product is available. In the case of mortgage loans, where is a potential buyer looking for loan information? You must consider how you can make it easier for borrowers to find loan information specific to their needs and how they can easily connect with you and learn about your options.

Price

Price refers to the amount a borrower is willing to pay for a product. A savvy borrower is going to shop around for the best possible mortgage interest rates that lenders have available. How do your rates stack up against the competition? What added value do your services bring to the table?

Promotion

The goal of promotion is to develop a strategy that puts your product in front of consumers and shows them how they will benefit. How will you get borrowers to find you and choose you as their lender?

The 5 best marketing tools for loan officers

Once you have considered the 4Ps of marketing, it is time to build your marketing toolbox. These five marketing tools are essential to building a consistent stream of leads and boosting your overall sales.

1. Website

In today’s digital age, one of the most important marketing tools a mortgage loan officer can have is a business website. Creating a strong website establishes the foundation of your online presence and is at the core of all your online marketing efforts. Your website allows you to showcase your services, as well as allows you to showcase your knowledge and expertise through the publication of regular blog posts, videos, and much more. When creating a website or adding additional blog posts, it is always important to include direct calls to action (CTAs) to guide your visitors on how to connect, such as through contact forms.

2. Google Business Profile

Creating a free Google Business Profile helps to deliver your mortgage services directly to the top of any google search results looking for mortgage loans in your area. These unique listings allow you to showcase essential information about your business, as well as provide contact information and a local map of your location. Once you have created a profile, you can boost your profile by asking previous clients to leave reviews.

3. Social media presence

If you are not currently using social media to its full advantage, then your marketing toolbox is missing an essential tool. With just about everyone using one social media platform or another every day, social media as a marketing tool is becoming more and more essential. While Facebook is still one of the most widely used platforms, other important platforms you must consider include LinkedIn, Instagram, and Twitter. By creating a business profile page on each of these, you can engage clients and leads, provide educational and informative posts that can boost engagement, and develop a strong following of leads and clients.

4. A referral system

Implementing a referral system allows you to leverage both your previous satisfied customers as well as the established partnerships you have with real estate agents and agencies in order to boost your lead generation. In general, consumers are more likely to trust the recommendations of friends or family members when compared to any other general marketing strategies. Creating a referral system that offers incentives for successful referrals can be implemented on a landing page on your website and shared through social media platforms.

5. CRM software

A quality customer relationship management (CRM) platform is a useful tool when it comes to building and nurturing customer relationships and managing leads. It allows you to manage all your customer data in one central location, track all individual customer interactions, including phone conversations, emails, and their position in the loan process, and automate many different marketing and sales tasks. In addition, analytics within the CRM helps to provide deeper insight into your target audience and show what marketing strategies are providing you the most benefit.

Keeping your marketing toolbox full is essential

Keeping your marketing toolbox filled with the tools that work best for you is essential. As with any toolbox, tools may wear down and their effectiveness dimmish and, when that happens, it may be time to find a new tool that helps get the job done. As a loan officer, your goal is consistent lead generation, and finding the tools that work best for you is essential.

At Good Vibe Squad, we understand the need for consistent leads when it comes to the mortgage industry and our Unfair Advantage™ program is here to help boost your lead generation. To learn more about how we can take your business to the next level, schedule a call today.

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14 Loan Officer Questions to Ask Clients

As a loan officer, it is important to work on building a relationship with your clients to best walk them through the mortgage process. Learning what questions loan officers should ask first-time home buyers is an essential part of becoming a successful loan officer. But what questions do loan officers ask and which questions will provide you with the key information you need to conduct a thorough client interview and get the mortgage process started off on the right foot? Here we take a look at some of the most common questions loan officers ask their clients during an initial intake interview.

Is this your first home?

Asking your potential clients if this will be their first home purchase provides valuable insight into many aspects of the mortgage process. For starters, first-time home buyers often have special loan options available that they can qualify for. In addition, if they are first-time homebuyers, they are not familiar with the mortgage process and may need more help navigating the process.

Why do you want to buy a home?

This is an important question to establish what type of loan your borrower may qualify for. Are they buying the home as a primary residence, vacation property, or investment property they plan to rent out? What type of home are they looking to purchase? A single-family residence or a duplex or condo? These are all questions that can make a difference in the loan type determination.

What is your price range?

Asking what their price range is for their monthly mortgage payment will help you better determine what loans they may be eligible for and how much home they can reasonably afford. It can also help you determine if they have realistic expectations when it comes to a home purchase and qualify for the home they want.

What is your timeline?

Knowing how quickly your borrowers are hoping to close on their new home can help to give you a better idea of what to expect and how quickly to walk them through the process. Have they already made an offer on a home and is there an established escrow period in place? In cases where they are hoping for an expedited closing, you will need to have everything ready to go and the necessary documents as soon as possible.

Are you working with a real estate agent?

Loan officers and real estate agents often work together or have established partnerships. Ask if your client already has a working relationship with an agent and, if they do not, you can refer them to a partner agent.

Do you have a co-borrower?

Knowing who is buying the home is essential. Is this a single-buyer purchase? Are a husband and wife buying the home together with two purchasers? Are two single adults buying the home to share? Knowing how many people will be on the mortgage allows you to better determine what information is necessary and how much they will qualify for together.

Do you have funds available for a down payment?

Because many loan options still require a down payment, knowing how much your clients have available for a down payment can help you better determine how much house they can afford and what loans they may qualify for.

What is your income?

Determining what your client’s monthly income is can help you determine how much they can afford in mortgage payments. When asking about income, you must take into consideration everything from employment income, disability, social security, child support and alimony, rental income, and more.

What is your work history?

For many mortgages, a stable income history is essential Asking for information about a client’s work history helps you to determine if they have at least a steady two-year work history and, if not, they can provide you with the reasons why.

Are you self-employed?

Self-employment often requires additional paperwork and an altered process when it comes to a mortgage. For example, self-employed individuals may need to provide a year-to-date profit and loss statement, as well as two years of business income tax returns. This additional information falls outside of the normal parameters when it comes to the mortgage process so knowing what to expect ahead of time can be beneficial.

What is your credit history?

While you will run a credit report on your clients, it is a good idea to ask what their credit history is ahead of time to give you an idea of what to expect. If they know they have some credit challenges, you may be able to recommend possible loan options or credit repair options before running a hard inquiry.

What is your current debt status?

Understanding your client’s current debt, such as credit cards, student loans, car loans, child support, etc. can give you a good idea of their current debt-to-income ratio and what loans they may be able to qualify for.

What are your current monthly housing expenses?

Knowing what your clients currently spend on their housing payments, whether as monthly rent or mortgage payments, can allow you to make a reasonable estimate as to what they may be able to afford when it comes to a new mortgage.

What’s important to you about your mortgage?

Asking this question allows you to learn what is important for your borrowers regarding a mortgage. Are they looking for flexible payment options, the lowest payment options, or the quickest payoff, for example? Learning this information will help you better tailor the available mortgage options to their needs.

Asking the right questions gives you the right answers

When it comes to the mortgage industry, knowing what questions to ask provides you with the answers you need to deliver the best possible experience to your borrowers. Asking these recommended questions is a great way to gather information and begin to develop a relationship with your clients.

At Good Vibe Squad, our team is here to help you build and grow your mortgage business through qualified lead generation. To learn more about our Unfair Advantage™ program and how we can help boost your bottom line, schedule a call today.

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Mortgage Refinance Leads: What You Need to Know

Mortgage refinancing is a major component of every mortgage business and generating leads is something that every loan officer works to do. But what exactly are mortgage refinance leads? Should you buy them? Can you obtain exclusive refinance mortgage leads? This quick guide will take a closer look at what these leads are and how your can best benefit from them.

What are mortgage refinance leads?

Mortgage refinance leads are specific lead types that are often generated through online websites, such as Experian, LendingTree, NetQuote, and TransUnion. When a prospective buyer visits one of these sites looking for information on a home refinance, they provide contact information, creating a lead. These websites then sell these to loan officers within the first 24-48 hours as “fresh” or “live” leads. Any leads that do not sell immediately becomes known as ‘aged leads’ and are typically sold at a reduced cost.

Should you buy mortgage refinance leads?

Purchasing bulk mortgage refinance leads, including aged leads, is a great way to boost your lead generation and increase your sales. These leads are validated and, depending on cost, often provide a greater ROI than traditional lead generation methods, such as cold-calling, direct mail campaigns, and other advertising methods.

How much does mortgage refinance leads cost?

Mortgage refinance leads can vary in price and that price depends on many different components, such as the age of the lead and how many leads you are looking to purchase at one time. For example, you can expect to pay between $20-$30 per lead for an exclusive, fresh lead. If you are looking for more affordable bulk prices, aged leads can vary from $0.08 to $1.50 per lead based on the age of the mortgage lead and how many leads you are purchasing at a time.

Are mortgage refinance leads exclusive?

Most reputable companies that sell mortgage refinance leads offer exclusive leads to all their buyers. This means that you are the only one that will get these leads. However, it is always a good idea to confirm with a company that your leads will be exclusive.

Other ways to generate mortgage refinance leads

While purchasing mortgage refinance leads is a great way to start and, in many cases, can be the most cost-effective method of generating these lead types, there are other ways you can generate leads for your business.

Optimized website

Creating an optimized website is a great place to start when it comes to lead generation. But what is an optimized website? Website optimization is a process that involves many different strategies to improve the performance of your website, drive more traffic to your site, and increase conversions. For example, you want a website that looks inviting on both a computer and a mobile device, loads quickly, offers seamless navigation, and includes the correct keywords and content to rank well within the search engines. Using tools like Google Analytics, you can track various metrics within your site to see what areas may need improvement to meet these goals.

Content marketing

Content creation is an effective method of lead generation, as well as a way to highlight your knowledge and expertise. Content marketing can include everything from blog articles posted to your website or partner’s (real estate agent) website, videos shared on social media, regular podcasts, or more that are designed to educate and engage prospective leads. For example, if you are looking to generate refinance leads, creating a blog post or podcast on the benefits of a mortgage refinance would be a great place to start. When creating content, be sure to include a call-to-action and contact information that tells your readers or viewers how you can help and what to do next.

Social media marketing

In today’s world, just about everyone has a social media account and uses it daily. As a loan officer, you must tap into the power of social media when it comes to lead generation. With a business social media account, you can share your content marketing, as well as other short statistics or other information your clients may find interesting about the industry. When you provide valuable information, your clients are likely to share this information with their followers, giving you a far greater reach and exposure to many potential leads.
In addition, through social media marketing, you can actively engage with customers and prospective leads, sharing your knowledge and establishing yourself as an industry leader.

Advertising campaigns

While traditional advertising methods, such as mailers or brochures, are still an effective option in some cases, many have turned to online marketing campaigns. Paying for pay-per-click advertising on sites such as Google, or social media advertising campaigns on Facebook, can often be an effective method of generating mortgage refinance leads when you choose the correct keywords, such as “mortgage refinance in (your city).”

Referrals

Leveraging referrals can also play a major part in your mortgage refinance lead generation. Networking with industry-related partners, such as real estate agents, financial planners, CPAs, and more can be a great place to start. Working together with these professionals will help you boost your referral network and help to enhance your lead generation.

Generating mortgage refinance leads

Whether you choose to purchase mortgage refinance leads or try and generate your own leads using some of the techniques recommended, boosting your lead generation is essential for success. At Good Vibe Squad, we understand the importance of quality leads and lead generation for the mortgage industry and our Unfair Advantage™ program can help to set you apart from the competition. To learn more about how we can help, schedule a call today.

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10 Strategies for Mortgage Lead Generation

The mortgage industry is highly competitive and, to be successful, you need a focused plan for quality mortgage lead generation. However, creating a consistent pipeline of leads every month is often the most challenging aspect of the mortgage industry. Loan officers often struggle with finding qualified mortgage leads consistently. Using these 11 lead generation strategies can help you connect with more potential clients and help you develop a consistent stream of leads for your business.

1. Social media marketing

Social media is a great way to connect with potential clients and gain new leads. Sites like Facebook, Instagram, LinkedIn, and Twitter, allow your business to create an online presence where you can work to build a loyal following of customers and leads. In order to be successful with social media, it is important to engage with your customers. Create useful content that sparks conversation and, when questions are brought up, be sure to engage and provide answers. For a successful social media account, it is important to provide new content consistently, as well as provide regular engagement.

2. Local listings

Listing your business in local online directories, as well as establishing a Google My Business account, will help ensure that you are front and center when leads search for local mortgage companies and loan officers.

3. Personalized landing pages or websites

In today’s internet-based society, it is essential to establish an online presence. This can be a business website or landing page. When creating these pages, it is essential to include high-quality content that helps educate potential clients and answers some of the most common mortgage industry questions. Make sure to have clear and precise call-to-actions (CTAs). Don’t forget to include a contact form that allows you to capture lead contact information.

4. Referrals

Referrals are still one of the best ways to generate new leads. If you are a new loan officer, consider turning to family and friends for initial referrals. Once you have satisfied customers, don’t be afraid to ask them for a referral after a closing. Oftentimes they have friends or family that are looking to buy or sell a home as well.

5. Advertising

Advertising is a powerful way to generate interest in your services as well as boost lead generation. These days, when it comes to advertising, your options are endless.

Traditional Advertising

Traditional advertising options, such as placing advertisements in local newspapers and magazines, can still be a highly effective lead generation tool depending on your target market. Other traditional marketing options can include information leaflets or brochures that can be shared and passed out by networking partners, mail flyers or postcards, and billboard or print advertising outdoors.

Online Advertising

In our online-based society, online advertising offers a world of different options. Your options are unlimited, from pay-per-click advertising on search engines to social media advertising and sponsored posts. Other online advertising options include banner advertising on partner websites, targeted ads, website classifieds, and email campaign marketing.

6. Purchasing mortgage leads

If your budget allows, purchasing qualified mortgage leads is a good way to target specific lead generation. When purchasing leads, you provide your target audience information, and the mortgage lead seller matches qualified leads for a fee. When thinking about purchasing leads, there are a few things to consider. Will the leads be exclusive or non-exclusive? Do they have a return policy should the leads prove poor?

7. Networking with real estate professionals and other businesses

Networking is an essential part of lead generation for the mortgage industry. Joining your local Chamber of Commerce and looking for local real estate networking events is a great place to start. Make sure that you have business cards available to hand out during these events and work to build relationships that can help foster potential leads. When relationships are established, partnerships are possible. For example, partnering with a real estate agent allows you to provide them with marketing material that they share with their clients and vice versa. In addition, you can co-sponsor an open house where your contact material is also included.

8. Community event participation

Participating in or sponsoring community events, such as local baseball teams, charity events, or even your local school’s PTA, can be a great way to establish yourself in your local community and provide networking opportunities.

9. Publish quality content

Showcasing your knowledge and understanding of the mortgage industry to others is a great way to show potential leads that you are an expert in the industry and help to develop trust. Creating articles for local magazines, real estate publications, or even local newspapers can be a great lead generation tool.

10. Reviews

These days, more and more people are turning to reviews when it comes to deciding on any type of product or service, so quality reviews can often be one of your best forms of lead generation. After a successful closing, don’t be afraid to ask your customers to write a review. In order to make it easy for them, provide a direct link to a review site where they can post their review.

Using All Your Available Tools for Lead Generation

When it comes to creating a steady stream of leads for your business, you must take advantage of all your available tools and options. Implementing the strategies here can help boost your lead generation and provide you with the stream of qualifying customers you are looking for. However, if you are still looking for more ways to boost your lead generation, the team at Good Vibe Squad can help. To learn more about how our Unfair Advantage™ program can help you generate more qualified leads and leave your competition in the dust, schedule a call with us today.

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