Cost to produce

One workflow, on the fixed side. Every figure below is computed from the 18 conditions on the sample file. Nothing here is asserted.

Benchmark

Cited range$10,800.00 to $12,600.00

Midpoint($10,800.00 + $12,600.00) / 2$11,700.00

Variable, loan officer commission at 42.0%$11,700.00 x 42.0%$4,914.00

Fixed$11,700.00 - $4,914.00$6,786.00

Commission is variable and out of scope. Everything below addresses the fixed side.

Industry benchmark. Replace with your figure.

Where the time goes

Summed from the 18 conditions on the file

Condition administration today175 / 60175 minutes (2.92 hours)

With the tool32 / 6032 minutes (0.53 hours)

Recovered175 - 32143 minutes (2.38 hours)

What that is worth

Fully loaded processor cost$Assumption, per yearProductive hoursAssumption, per processor per monthNon-condition work per filehrsAssumption, in hours

Today

Hours per file2.92 + 5.28.12

Files per month145 / 8.1217.9

Processing labor per file$82,000 / (17.9 x 12)$381.75

With the tool

Hours per file0.53 + 5.25.73

Files per month145 / 5.7325.3

Processing labor per file$82,000 / (25.3 x 12)$270.09

Reduction per file$381.75 - $270.09$111.66

Against a $11,700.00 cost to produce, that is 1.0%. It is small because it is one workflow on the fixed side, and because it is counted rather than claimed.

At your volume

Loans closed per monthYour figureProcessors on staffYour figureDays, initial approval to CTCYour figure

Annual reduction—

Files per processor per month—

Baseline this model assumes145 / 8.1217.9

Enter your figures.

Not modeled

What this model does not capture

Cycle time reduction and its effect on lock extensions.
Fallout from poor borrower communication.
Capacity to absorb volume without hiring.
Error rates and the rework they cause.