How to Measure Branch Profitability w/ Mortgage Business Intelligence

Measure mortgage branch profitability with financial and sales KPIs. Business intelligence dashboards allow lenders to compare their branches' monthly and 12-month profitability, performance, and rank. Branch profitability is presented as net income basis points (BPS), contribution to corporate overhead, as well as total units, and volume. A six-month graphical trend of net income is also provided. Branches can be sorted and filtered by any of these performance criteria.

"Mortgage business intelligence has been invaluable to mortgage lenders who want to position themselves for success after the refinance bubble, but it’s easy to get lost in all of the numbers. Branch performance ratings gets to the bottom-line by focusing on net income BPS and contribution to corporate overhead for each branch." Said John Beneventi, Co-Founder of 5X Solutions.

Industry leaders have emphasized the need to align branch goals with company goals as lenders face a more challenging outlook for 2022 and beyond. Measuring and evaluating branch profitability is critical to executing a successful company strategy.

Net income basis points (BPS) are a widely recognized method for comparing branches to each other because they are a relative measure of performance. Absolute profitability, which takes into account units and volume, is another way to view branch productivity that complements net income BPS. Branch trends in net income augment these performance metrics.

Why Measure Mortgage Branch Profitability?

Lenders will find opportunities to maximize profitability by drilling-down on sales performance, cost of goods sold, and expenses. This knowledge helps lenders refine their compensation structure, product offerings, staffing, and expansion decisions.

Explore other measures of profitability and analytics with our list of the top 10 mortgage lending KPIs.

About 5X Solutions

5x Solutions, LLC is a Fintech company that offers digital mortgage industry solutions that focus on mortgage business intelligence, automated financial reporting, performance dashboards, data analytics, and other BI tools. It offers lenders both advisory and technology services that optimize resources, improves profitability, contains costs, and helps increase scalability. Using its cloud-based Telemetry BI platform, clients have 24/7 access to critical key performance indicators, metrics, and financial reports needed to measure and manage their company. Their turnkey, cloud-based business intelligence platform offers a best-practice approach to data analytics and reporting.

Explore more trends in mortgage business intelligence and mortgage analytics.