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Mortgage Industry Key Performance Indicators

• Seller Risk Administration. Seller Risk Administrations primary responsibility is determining the amount of risk that a seller represents to the investor organization and implementation of programs for the mitigation of seller risk.
• Correspondent Sales and Sales Support. The correspondent lending sales department's primary responsibility is convincing originators (a.k.a. sellers) to sell their loans to the investor and managing the resulting correspondent sales relationship. The sales team works hard to establish these relationships and the Account Executives commissions are based on the loans that their sellers send to the investor. Typically, the sales Account Executive is the first person that the seller will call when Seller Risk Administration presents them with negative feedback. Because the sales team is the primary link between the seller and the investor organization it is essential that the sales team understands and is involved with the performance monitoring program decision making process. If sales is not involved in the decision making process more often than not the performance monitoring program is a failure.
• Secondary Marketing and Loan Registration. An investor's Secondary Marketing department is typically responsible for determining the loan products that the investor will offer, correspondent loan registration and monitoring of the resulting pipeline. The Secondary Marketing department manages the investor's servicing portfolio and sets daily rates based on the investor's hedging and pooling strategies. Secondary Marketing, from a seller performance monitoring perspective, is very concerned with a seller's pull through, funding quality and early payoff statistics.
• Underwriting and Pre-Purchase Quality Control. Prior to purchase the Underwriting and Pre-Purchase Quality Control units ensure that the loan package delivered by the seller meets published guidelines for the loan product that the loan is delivered for. Seller Risk Administration relies on Underwriting and Pre-Purchase Quality Control for ensuring that the loan and data associated with the loan is correct and accurate. Underwriting and Pre-Purchase Quality Control are key in identifying major issues like fraud and errors and omissions on key loan qualification documents.
• Loan Processing a.k.a. Funding Department. Once Underwriting and Pre-Purchase Quality Control have done their jobs the Funding Department takes over. The Funding Department loads the loan into the servicing system, reconciles any loan accounting issues and validates the loan package and wires funds to the seller. From a performance monitoring standpoint the funding department provides key information on seller funding quality.
• Post-Purchase Quality Control. Investor's typically perform quality control (QC) checks on a percentage of the loans they fund. This additional quality control data is used in assessing seller's risk ranking.
• Servicing. The Servicing Department is crucial for providing and maintaining statistical data for a seller's delinquency, early payoff, early payment default and other servicing related issues.