Mortgage consultants have long recommended lenders use scorecards as a way to gauge loan officer performance and productivity.
Good afternoon! Was this newsletter forwarded to you?Sign up here.
Hello LOs!
What if a bad report card meant losing your job?
Mortgage consultants have long recommended lenders use scorecards as a way to gauge loan officer performance and productivity. Scorecards can take into account metrics like pull-through ratios, the number of lock extensions per loan and how many loans were approved on their first submission.
That's one way lenders could gauge LO performance. With lenders eyeing ways to trim expenses, scorecards could see renewed interest, or lenders may experiment with other ways to weed out poor performers.
LOs at Draper and Kramer Mortgage Corp. and CrossCountry Mortgage told HousingWire that their employers prefer to use more traditional performance reviews, rather than scorecards or stacked ranking.
Companies in other industries — especially tech — have drawn fire for aggressive performance review tactics.
One controversial practice is stack ranking, or measuring employee performance based on how they compare to their peers' performance, rather than a job description or specific goals. Last year, the Seattle Times reported that Amazon aims to systematically rid itself of 6% of its office employees each year, based on an automated employee ranking system.
Critics of the system contend it contributes to pay and promotion discrimination, generates a toxic workplace culture and harms innovation. Microsoft ditched the practice in 2013. General Electric, whose former CEO Jack Welch pioneered stack ranking, abandoned it in the early 2000s. Lawmakers in Washington state are pushing legislation to limit the practice.
Have you noticed changes in how your employer is measuring performance? Email me at mvolkova@housingwire.com.
The acquisition is intended to enable Seattle-based Redfin to expand its loans products nationally, as it wants to be a one-stop-shop for brokerage and lending.
Pennymac is celebrating their stability and steady growth with a new name, brand and marketing effort. Starting with an increased technology investment, they're doubling down on their commitment to the channel to help their partners on a journey to greatness. Learn More!
With loan production costs on the rise and the resulting margin compression, lenders should be on the lookout to reduce costs wherever possible in the origination process.
EmoticonEmoticon