Financial diligence is always of the utmost importance. This becomes even more necessary at certain times in the economic cycle. The nature of today’s industry demands that we apply extra diligence to achieve and maintain profitability.
Break-even numbers, fall-out percentages, cost savings, expense management, branch capture rates and P&Ls are more important than ever as each branch strives for a stronger ROI. Streamline workflow and your staff to increase efficiency and decrease costs. Take a hard look at revenue leakage, particularly as it relates to appraisals, cost to cures, credit, waiving fees, etc. Evaluate and adjust branch margins and loan officer comp plans on a regular basis.
Learn how to use Loan Vision and Domo. Calculate, evaluate and map out a well-planned strategy to achieving the goal of increased profitability. Pinpoint where you can reduce or eliminate expenses that may not serve your bottom line. Utilize technology to further increase efficiency and drive down expenses.
Finally, allow technology to become your friend. As you become faster, your processes become faster and your clients become happier. The ROI on this in terms of word-of-mouth and online referrals cannot be overstated, particularly in lean times. One closing is great for that month’s numbers, but a long-term pipeline full of consistently happy customers who have invaluable networks of family, friends and co-workers can keep you busy year in and year out.