MBA Chart of the Week: Monthly Underwriting Productivity

The downward trend in average monthly underwriter productivity for the retail production channel (excludes third party and consumer direct originations) continued for large lenders, but flattened for mid-size lenders.  

For large lenders (firms generally in the top 50 nationwide), productivity averaged 29 applications per underwriter per month in 2015, down from 33 applications per month in 2014. Likewise, the number of loans closed per underwriter dropped to 20 closed loans per underwriter per month, from 21 closed loans per month in 2014. Both of these 2015 benchmarks represent new study-lows for large lenders in this production channel.   

Underwriter productivity for mid-sized lenders (firms originating an average of $1.6 billion in the retail channel in 2015) did not worsen in 2015, averaging 38 applications per underwriter per month in 2015, compared to 37 applications per month in 2014. The number of loans closed per underwriter was flat at 26 closed loans per underwriter per month.   

Monthly productivity is measured as the average of the number of applications (or the average number of closed loans) in a given year divided by the number of full-time equivalent underwriters, divided by twelve. Underwriters include junior, senior and all other level underwriters as well as appraisal reviewers, validators and credit analysts.  

To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.  

(Marina Walsh is vice president of industry benchmarking and research with MBA; she can be reached at mwalsh@mba.org.)