Top 12 Mortgage Business Intelligence Mistakes :: Part 3

This is the third installment of a six-part series on the most common mistakes that occur when evaluating, implementing, or using mortgage business intelligence (MBI). Today’s article discusses alternate data sources and user access.

5. Using a single data source

Like any technology undertaking, MBI projects can plateau, keeping the potential for advanced functions and practices unrealized. Even after groundbreaking achievements in efficiency and profitability, users can become complacent, and won’t get around to considering other areas where additional value can be realized. Once you’ve transformed the full spectrum of your operational dynamics, applied scorecards to your branches and individual originators, and implemented TRID monitoring, it’s time to consider data sources beyond your LOS production data.

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Bringing in accounting data can set the stage for accurate loan level cost tracking. Blending in data from marketing or lead management platforms can dramatically increase the effectiveness of advertising campaigns as well as tighten up your lead handle time, leading to higher conversion rates and increased volume. Folding in customer survey data can reveal valuable opportunities to enhance service levels, leading to more repeat business and referrals. And combining data from secondary marketing can help managers maximize gain on sale by focusing on recreating the common elements of the most profitable transactions, along with shifting their product mix or applying pinpointed product training for the offerings that generally yield less.

6. Placing limits on usership

Another interesting development I’ve often seen crop up is the tendency of users to hoard their mortgage business intelligence. This territoriality has a number of potential causes. Most often, managers believe that staff level employees simply don’t need the data. They feel that having converted their own analytics and having much more time to consider and make effective decisions is all that they need to optimize production levels. In other cases, I’ve heard managers express the opinion that granting production staff access to another system will lower their performance levels by reducing the time they spend in their production systems.

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In both of these cases, nothing could be further from the truth. Every MBI installation I’ve worked with clearly demonstrates that there is a direct relationship between MBI usership and profitability. Organizations with larger user bases always exhibit more efficiencies than those with just a handful of users. This reveals the true power of MBI, namely to induce staff to reflexively gravitate toward peak performance, and there are two reasons why this happens.

The first is the observer effect, otherwise known as the Hawthorne effect, in which people instinctively change their behavior by boosting their work levels in response to being continually measured, or observed. Even more impactful is the dramatic shift from task-oriented to goal-oriented workflow, which can only happen if employees are connected to their departmental goals through dashboards. Whether these metrics are on wall monitors in the operations division, on desktop PC monitors, or automatically delivered to individuals via email, connecting employees to their goals gives them the vision they need to prioritize their work.  They’ll become more dynamic thinkers, they’ll be driven to hold more information in active memory, and will constantly look for ways to be more efficient.

About The Author

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Jon Maynell
Jon Maynell is a mortgage industry veteran, with over 25 years of experience designing, marketing, and writing about mortgage technology. He is currently Vice President of Client Services at Denver-based Motivity Solutions, Inc. He can be reached at 303-721-9000, or jon.maynell@motivitysolutions.com.