by Tyler Sherman | CEO, Motivity Solutions
While most talk around regulatory issues this year centers around TRID, the less recent changes to the Truth in Lending Act (TILA/Regulation Z) remain the focus for sales managers. Consistently ensuring that originators are not steering consumers into transactions not deemed to be in the best interest of the borrower, based on the ability of the originator to receive greater compensation is as difficult as it sounds. This challenge for sales management is compounded by the need to refine originators’ prospecting and qualifying efforts to produce application files that are complete as well as compliant.
To address these challenges, loan originator scorecards are a necessity if lenders want to consistently evaluate their loan officers using multiple criteria, instead of rewarding just one behavior, traditionally funded volume.
In addition to promoting compliance and efficiency, originator scorecards enable the lender to enforce accountability and transparency. With data comes insight, and with insight comes power.
In the end, that insight can be made accessible to investors looking to buy loans from the most transparent lender, regulators looking to make sure that the lender is on the up-and-up, and borrowers looking for instant status updates on their loan. Lenders actively using scorecards are seeing an immediate return on their investment in these and many other ways.
To illustrate how lenders are utilizing powerful performance and scorecard tools, Erin Palmer, Managing Director of Mortgage Operations at Talmer Bank and Trust, uses Motivity Solutions’ MovationTM dashboards to monitor pipeline activities, production goals, and originator activity and performance.
Each individual loan officer utilizes pipeline dashboards to track his or her loans as they progress through the loan origination system (LOS). The originators also focus on lead management and creative ways to cater to their best, highest-value referral sources.
Talmer proactively tracks individual performance to hold team members accountable and to target training opportunities. More importantly, via individual scorecards, Movation will soon enable employees to self-monitor and strive to improve based on the goals established for them by their managers and the company.
From an executive perspective, Palmer watches trends to gauge potential ebbs and flows in production volume so that he can anticipate activities and allocate resources accordingly.