With the decline in refi volume and the shift to purchase and squeezed margins, lenders must remain competitive to be profitable. Lenders who can get to pre-approval faster while maintaining the same degree of diligence and providing a positive client experience will gain a competitive edge and be better positioned to capture market share. There are some important areas that lenders need to focus on that will help to increase sales velocity, close loans quickly, and improve the overall client experience. These tools include:
- Number of Applications per Month
- Loan Value
- Win Rate
- Length of Sales Cycle (Average time to close)
The sales velocity of a lending business which refers to the number of loans offered in Dollars per month is directly proportional to the Number of Applications per Month, Loan Value, and the Win Rate. This, in turn, means that there would be an increment in the sales velocity of a lending business when there is a corresponding increase in any of the lead measures listed above. Therefore, as a lender, you need to identify the lead measure that requires a major improvement, then focus your efforts on those activities that produce a significant increase in revenue.
As a lender, once you understand the lead measure that impacts revenue generation the most, you need to understand the sales activities that have the most impact on that measure. Some of these activities include; Qualification, process and workflow improvements, underwriting, presenting, processing, closing, collection, and managing loan documentations. Then improving upon these activities.
As a lender, these four levers (lead measures) are critical to ensuring the success of the lending business. To read more, click here.
https://www.housingwire.com/white-paper/five-levers-for-lenders-to-increase-sales-velocity/
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