You know, the best thing about the Fairway Scorecard is that it does not lie. It does not care about what you accomplished last month, how good you think you are, or your ego… It tells you the truth, the whole truth and nothing but the truth.
June was a landmark month for our team as we broke our all time production record and we were the fourth highest producing branch in all of Fairway with 141 families served. Truly an honor to have helped each of these clients into their homes (especially in this tough market, many clients fighting to find a home for 6 to 12 months before they were successful enough to get one).
We also broke our all time single loan speed record. Paul M. went from sending us his purchase agreement to clear to close in 4.29 days. Being able to close a loan faster than the law allows is pretty cool (there is a mandatory 7 day waiting period from initial disclosure by law) and it sure makes everyone feel more comfortable when the closing documents and wire are sitting at the title company waiting for the legal wait period to expire. We cleared to close 10 loans in 10 days or less, which is a hoot because we know we have far exceeded these clients’ expectations and created a remarkable experience each of them (our #1 goal).
So we have a lot to be proud of, high fives all around, we’ve officially made it! Oh yeah, except for the Scorecard…
- Our wire department score actually improved and now sits 4 points above the company average. This is an internal metric that shows how efficiently our team handles getting the wire out, recordation of documents, and ultimately getting clients the keys to their home. Up 5 points from May. Win!
- We slipped dramatically in the clear to close 72 hours before signing. In May 75.19% of our loans were clear to close 3 days early, in June only 46.67%. Why is this important?
It’s important because these families are living in boxes at this point in the transaction. If we are still clearing their loan and asking for additional items, it has a negative impact on the client’s experience. Boxing up one’s home to move should be a celebration, children running around with excitement, bad Chinese food, laughter, and fun. All possible if the closing documents for their new home are already at closing and awaiting their arrival for signatures. Impossible if in the back of the client’s mind is “are we going to get this loan?” Nothing impacts the client experience more than having a clear to close loan and closing documents out 3 days early. That is our #1 metric to create a remarkable client experience.
- Submitted to processing to clear to close also slipped, we averaged 15.87 days in May and we lost about 5 days in June at 20.69 days.
These two metrics are obviously tied together, had we cleared to close in 15.87 days, we would have had our 72 hours clear to close before closing on a lot more loans. This is the exact point of focus for our team going forward.
- The initial Closing Disclosure was sent to client an outstanding 13 days before closing. Really got to give it to our closing team, they are remarkable. As a client, I love seeing an initial settlement statement (CD) two weeks before arriving at closing. Job well done and 3 days faster than the company average.
- 20 days is the average time it took us from initial application to underwriting approval. This slipped 3 days as well from last month and is another clue that we need to refocus on this area. Still two days better than the company average, but we believe we can and will do better.
- So how do we handle slippage, when we see the start of what could be a trend towards a less ideal client experience? We take extreme ownership – and it starts with me. How good were the files I submitted in June – how well were each these 141 families’ loans put together – did I get a little tired?
Yep, plenty of room for improvement and it starts with me.
We’ve committed to step up our game. We’ve re-created our perfect loan process both for origination and operations; we are rebuilding our checklists and doing a manual spot-check review of loans before they go into processing. We are tightening our bootstraps and marching on.
If it were easy and we won all the time – it would not be fun. Game on.
Josh Mettle is an industry leading author and mortgage lender, specializing in financing physicians, dentists, CRNAs, and physician assistants. You can enjoy great physician real estate and mortgage advice here or by visiting his book site. Josh is also a fourth generation real estate investor, and owns a number of rental homes, apartment units and mortgages. Josh is dedicated to helping physicians become more financially aware and able; listen to “Physician Financial Success” podcast episodes or download Josh’s latest tips and advice here.
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