1. What Is Average Turnaround Time (TAT)?

Average Turnaround Time (TAT) in mortgage processing refers to the average number of days taken to approve mortgage applications. It is a key performance indicator for lenders to measure efficiency and customer service quality.

2. How Does The Calculator Work?

The calculator uses the simple average formula:

Where:

• \( Approval\ Time_i \) — Individual approval time in days
• \( n \) — Total number of applications

Explanation: The calculator sums all individual approval times and divides by the number of applications to determine the average processing time.

3. Importance Of TAT Calculation

Details: Monitoring mortgage TAT helps lenders identify bottlenecks, improve operational efficiency, enhance customer satisfaction, and benchmark performance against industry standards.

4. Using The Calculator

Tips: Enter approval times as comma-separated values (e.g., "15,20,18,22"). All values must be valid numbers representing days. The calculator will compute the average automatically.

5. Frequently Asked Questions (FAQ)

Q1: What is a good mortgage TAT?
A: Industry standards vary, but typically 15-30 days is considered good. Faster TAT often indicates more efficient processing.

Q2: How can lenders reduce TAT?
A: Through process automation, staff training, better document management, and improved inter-departmental coordination.

Q3: Does TAT affect customer satisfaction?
A: Yes, longer processing times often lead to borrower frustration and increased drop-off rates.

Q4: Should outliers be removed from TAT calculation?
A: For accurate benchmarking, extreme outliers due to exceptional circumstances may be excluded from average calculations.

Q5: How often should TAT be measured?
A: Most lenders monitor TAT weekly or monthly to track performance trends and identify areas for improvement.