Everett Ives and Associates

Internal Reporting        
"People don't do what you expect but what you inspect." - Louis V. Gerstner, Jr.

Every Audit and every Examination starts with a report, or many reports.  You should be running reports on your company too. Your computer system is like a reverse periscope, looking down into the details of your company, your files and your employees' activities.  The old way was to do it on a chalk board or a white board and that worked when you had fewer details to keep track of, no remote employees and no branch offices.  In my opinion, that's suicide today.

If you are using any of today's LOS systems that hold any significant market share, you already have a reporting system. None of them are great but all will do the job.

As the manager or owner of your company, you should be looking at the following EVERY DAY.
Applications by each LO and Processor
Projected closings for this month by LO and Processor (and Closer if you are a correspondent)
Loans in Underwriting by Underwriter or Investor
Actual closings for this month by LO, Processor and Investor or Closer
Initial disclosure triggers and whether disclosures were sent
In the environment after October 3rd, 2015, you need to stay on top of disclosure dates, waiting periods, redisclosure types and that only lawful items are changed.  You might do a report that focuses only on Changed Circumstances and the reason given in your computer system
Profit projections based on initial disclosures (in part to find MLOs that left out all your fees)
Lock expiration reports (you may compare the expiration date with the expected closing date)
Pipeline status report (some LOSs have Milestones or you may use other measurements)
Loans that are
Purchase stipulations
Warehouse balancing report
Loan sale reconciliation report (did the investor charge the correct fees and the correct price on purchase)
HMDA data report (do this daily or weekly, otherwise you will shut down for a week at the beginning of next year)
1098 data on loans closed last month (or your accountant will have to do this)
Loans by Investor
Active pipeline
Cancelled files
Locked files
Closed files
Shipped but unpurchased files
Purchased files
Pre-Quals (you need to make certain there are no loans in your Pre-Qual system that are legally applications
Profit earned MTD
Commissions earned

If you think this will consume a lot of paper, pay someone to plant a tree.  That cost will be far less than the losses you will suffer by not managing your business.  If you think you can absorb all this information by reviewing spreadsheets or PDFs, do it that way but, DO IT DAILY.

When your employees realize that you are looking at their work details, they will step up their performance.  When one of them asks for a raise, you already have a measurement of their value to your company.


(c) 2015 - Everett Ives and Associates