Beyond pull-through rate: Looking for the cause

by MPA09 Oct 2014
By David Lykken
Special to MPA

Over the past week, I've focusing quite a bit on the importance of measuring pull-through rates of applications. Not only should we be measuring the overall pull-through rate of the application to funding, but we should also be measuring each application's movement throughout the entire funding process. The activity of each party should be measured, so we'll know where the problems lie.
That being said, I think we can drill down even further. Not only should we be measuring where the loans are breaking down in the funding process, but we should also be measuring why they are breaking down. Just because we have an understanding of what is happening, that doesn't mean we know why it is happening. We should always be on the lookout for the cause.
What kinds of loans are failing in various steps of the process? What are the characteristics of the applications that are preventing them from moving forward? What able the characteristics of the representatives working on the loans? What behaviors are they demonstrating or tools are they using? Are these tools and behaviors working, or are they causing the organization to lose out?
The takeaway is this: don't just track what is happening, track why it is happening. Seek the cause behind why loans are going through or why they aren't. When you've measured what is happening with the pull-through rate and you've measured why it is happening, only then will you know what you need to do to solidify your processes and make your organization unstoppable.
David Lykken is 40-year industry veteran who consults on virtually all aspects of mortgage banking. David hosts a successful weekly radio program called “Lykken On Lending” ( that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals.


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