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, Jackie Amato, president of TowneBank Mortgage, uses Motivity Solutions’ Movation 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 TowneBank originators also focus on lead management and creative ways to cater to their best, highest-value referral sources.
TowneBank 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, TowneBank’s Amato watches trends to gauge potential ebbs and flows in production volume so that she can anticipate activities and allocate resources accordingly.
About The Author
As co-founder and CEO of Motivity Solutions, Tyler Sherman is responsible for establishing the vision and long-term strategy of the company. Tyler has more than 20 years of sales, marketing, and executive leadership experience across the mortgage and technology industries. Before founding Motivity Solutions, Tyler was a co-founder of Watermark Financial Partners, where he led the sales team to unparalleled productivity and profits. The sales and marketing programs developed by Tyler led Watermark to become one of the largest organizations of its kind. Tyler understands the need for flexible technology that can help companies navigate the inevitable ebbs and flows of any industry. His capabilities for using technology and business intelligence to enhance the sales and marketing functions helps create a sustainable competitive advantage for Motivity’s clientele. Tyler’s operational and executive expertise in running successful companies effectively aligns Motivity’s interests with that of its customers, and his philosophy of creating value for all stakeholders by building long-term relationships through ethical business practices is applied to all aspects of Motivity Solutions. Tyler has a B.S. in Finance and Marketing from the University of Colorado and an MBA from the University of Denver.