On the March 8 episode of my Lykken on Lending podcast, we had John Maynell of Motivity Solutions on briefly to share a key performance indicator for the mortgage industry. This time, John discussed the "conditional approval to resubmit" metric. Measured in days, this KPI cleans up the workflow between processing and underwriting by creating greater efficiency in how conditional approvals are handled.
As regulation has increased in the last several years, organizations are running into more and more "conditional approvals." For better or for worse, it isn't as easy to approve borrowers for loans as it was a decade ago. There are more hoops that consumers have to jump through, and it's our job as lenders to help them make those jumps.
Unfortunately, consumers who are harder to work with often get overlooked. When borrowers are deemed "more trouble than they're worth," the lending process can become dragged out longer than it needs to be. If we measure how much time passes between the "conditional approval" and the resubmit, though, we'll be able to catch those inefficiencies quicker and make corrections where we need to.
We've got to monitor this because every consumer deservers a fair chance, and we all want to be the ones who give it to them. As with anything else, the only way to know if we're doing a good job is if we actually measure it.