Job Description For Mortgage Loan Officer I
Mortgage Loan Officer I solicits and services a variety of residential mortgage loans. Interviews applicants, collects financial data and documents, and makes recommendations regarding the loan products that best meet the borrower’s needs. Being a Mortgage Loan Officer I assists buyers in the purchase process through closing. Requires a bachelor’s degree. Additionally, Mortgage Loan Officer I typically reports to a manager or head of a unit/department. The Mortgage Loan Officer I works on projects/matters of limited complexity in a support role. Work is closely managed. To be a Mortgage Loan Officer I typically requires 0-2 years of related experience. … View full job description
Becoming A Loan Officer
After all that, actually becoming a loan officer is relatively easy. If you are going for a day job in a bank type setting, they may have other requirements and may pay you a small salary.
Mortgage lenders and brokers will mostly hire you on the spot, assuming you dont look like you are going to be a huge pain. They dont care, because you are typically working on 100% commission. If you dont hustle they dont pay you anything. Yet, this is where the real money is. If you can sell, you can make an unlimited amount of cash.
The most important thing to know is that this is your own small business. This is not like any job youve ever had before. Youve got to go get your own business and clients.; Invest your own money in marketing and learn everything on your own. This is essentially a license to print your own paycheck. How big that is depends 100% directly on your hustle and efforts to learn.
Your big next step is going to be to set up that business, including:
- Your own mortgage website
Financial Intermediation Might Not Even Be A Good Option
Unrelated to mortgages, the investment management industry has an interesting example of how getting rid of financial intermediation might be best for everyone. Index funds automatically track and invest in markets, as opposed to using the traditional model of human fund managers being paid to actively choose investments.
As a result, not only do index funds cost significantly less they usually outperform their human-managed counterparts, according to the SPIVA. In fact, this fund management strategy has been so successful that index funds have grown to account for 34% of market share.3
This example of index funds is a good reminder that consumers might benefit from other disintermediated financial services , as well.
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Perks To Being A Mortgage Broker Or Loan Officer
Thinking about getting involved in the mortgage loan industry? It just might be the career move youve been waiting to make!
Jun 12, 2019 How do mortgage loan officers make money? The mortgage company compensation/fee is built into your mortgage interest rate as a percentage of;
Feb 26, 2021 If the MLO is a broker, they may be paid by their clients or by commission from the lender they partner with to close the loan. If the MLO is a;
Do Loan Officers Make A Commission
The income of a loan officer depends largely on whether their employer pays a flat salary or has a commission-based structure in place. As a sales-based role, the general rule is that you can make more commissions in situations in which you’re generating your own leads. The difference can range from 0.2% to 2% of the total loan amount, again depending on the employer. Additionally, loan officers can earn incentives for reaching certain thresholds or selling certain products.
Related:Learn About Being a Loan Officer
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To Illustrate This Average Let’s Say That A Loan Officer Originates One $250000 During The Month
$250,000 loan X 2% = $5,000
The 2% commission on that $250,000 loan that the officer originates will give the MLO $5,000 in commission for that one loan.;If over the course of a year the MLO closed one loan per month over 12 months, that loan officer will have made $48,000 that year. Keep in mind that this scenario assumes only one loan originated a month.;Most loan officers can close anywhere from 18 to 25 loans in a year, with some doing as many as 35 to 40.;According to U.S. News, which ranks loan officers as #14 on its list of Best Business Jobs, the average salary for a loan officer in 2015 was $63,430 with the upper 75th percentile making over $90,000.
But that income comes at a cost: hard work. Originating mortgage loans is not a simple walk-in-the-park job. The life of a mortgage broker or loan officer is one that takes deadline management, marketing, communication skills and a desire to succeed. The industry also demands much from its loan officers as there are a number of government regulations, rules and laws to abide by in order to obtain and maintain a MLO license.
How Many Loans Does The Average Loan Officer Close
Jul 27, 2020 And how many loans do they close? Loan officers, also known as mortgage loan originators or MLOs, are individuals employed by banks or;
Mortgage loan officers must have a Mortgage Loan Originator license. To become licensed, they must complete prelicensing courses, pass a national exam;
The typical compensation for a loan originator working for an independent bank or brokerage is in the neighborhood of 1.5% of each funded loan. If the typical;5 answers; · ;25 votes:;Being a loan officer is primarily a sales job, although one that is highly specialized. Just
Answering this question for mortgage loan originators located in the United States, where there are no more How much does a mortgage loan officer make?1 answer; · ;5 votes:;I think you may have meant income instead of salary. Most are paid minimum wage as
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What Does A Mortgage Loan Originator Do Bankrate
Mar 12, 2021 In contrast, a mortgage banker can make this decision, and reviews your application in order to decide how much you can borrow and under what;
Just ask any of our current loan originators and they will tell you how insane our marketing boost program is. I literally have the pay stubs to back this up.
Loan Officer Career Advancement
- Its generally a lateral move from one shop to another based on compensation structure
- Other than going from say a junior loan officer to a senior loan officer
- Most LOs just switch companies to get better commissions
- Though it might be possible to open your own shop or become a sales manager as well
Loan officers generally stay in one place and dont advance internally within a company.
They may change their status to Senior Loan Officer, but usually it means very little aside from the fact that theyve been around a little longer than typical loan officers. There could be a bump in compensation levels though.
More likely, loan officers can advance externally if recruited by other companies paying higher commissions, or even a base salary. Or a mega bonus to jump ship.
Those who are able to create and manage a large book of business may wind up with a lot of suitors, and its not out of the realm of possibilities to be offered a six-figure bonus to change companies.
Many loan officers also apply for a brokers license as a means for advancement. And eventually employ their own loan officers, and take a cut off everything they earn.
In that sense, there are a variety of advancement opportunities for successful individuals. Its also possible to shift to the operations side of things if you turn out to be not much of a salesperson.
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What Do Loan Officers Do
A loan officer often works at a lending or financial institution. The loan officer will sometimes work with individual applicants or companies, depending on the position. Customer service is important, so that the client feels at ease and chooses the company for their loan needs on an ongoing basis. In some jobs, the loan officer will have sales goals that need to be attained.
It may sometimes be necessary to reach out to current and new clients to fulfill their loan needs. This may includeRead more
- Obtain and compile financial information to evaluate loan applications and their risk.
- Generate new clients and referrals through strong relationship building.
- Track and maintain credit and loan data.
- Work directly with clients to review agreements, explain programs, and negotiate loans and terms.
What Are The Advantages And Disadvantages Of Being A Loan Officer
Loan officers typically work in comfortable office environments and dont have to spend a lot of time on their feet. Loan officers often work alongside other people, such as assistants and customers. For many, human interaction is a plus.
A lot of loan officers earn a substantial salary. More than 10% of loan officers earn six figures a year. However, the pay is often tied to performance. Generally, the more loans approved, the more a loan officer will make.
The loan industry can be cyclical. During the Great Recession of 2008, housing prices plummeted as demand for houses decreased. The mortgage industry also suffered as fewer applicants applied for loans.
Working with customers can be difficult. Many applicants will ask tough questions. Explaining financial concepts is challenging, especially if the customers financial knowledge is limited. If a customer is rejected, or their application takes a long time to process, they may become irate or stressed. The loan officer may end up the subject of their anger.
Some loan officers must find customers. This might mean cold-calling potential customers, attending events, or working with real estate agents. A lot of people dont enjoy sales but for many loan specialists, its part of the job description.
Finally, many loan officers have schedules that take them away from their family and friends. Some loan officers start working later in the morning and go on well into the evening. You might not get home until 9 p.m. or later.
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Getting The Appropriate Degree
Degrees in accounting, finance, economics, or business administration are just a few examples of relevant studies and coursework needed to navigate the current financial world. Loan officers should consider completing a degree program like this to help develop necessary industry skills, such as financial analysis, accounting, sales, project management, and data analytics.
Whats more, those who complete an undergraduate degree at a top university like Northeastern will have countless opportunities for hands-on learning throughout their program. Opportunities like these allow students to not only develop the relevant skills needed to achieve success, but also help to create a valuable network of industry-leading professionals.
Did You Know: Individuals with a college degree earn an average 65 percent more than those with only a highschool diploma.
Loan Officer Job Description Expected Salary And What Your
The median income for a loan officer in the United States was $63,650 in 2016, according to the Bureau of Labor Statistics . That works out to an hourly;
8 days ago Loan officer salaries vary by career path, but hard work is typically rewarded. According to Indeed, the average loan officer salary is $74,150,;
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Loan Officer Education Requirements
One of the most interesting things about the loan officer career is that even a person who doesnt have any experience can become a loan officer. A high-paying job that welcomes newbies is hard to find.
In fact, certain mortgage lenders and brokers will hire a loan officer even if they dont have a high school diploma or a bachelors degree. This means that you can become a loan officer even if you didnt do great at school or werent fond of learning.
However, larger financial institutions will likely look for a college degree if the candidate doesnt have any experience.
When it comes to licensing, it typically depends on the company, state, and specific position. These days, many loan officers are required to be licensed.
But there are still positions at banks where a Mortgage Loan Originator license isnt required.
Even if a person does have to be licensed to become a loan officer, it isnt a big deal. In the majority of cases, they only need to take 20 hours of coursework, pass an exam and complete 8 hours of continuing education every year.
The takeaway from the educational requirement is that getting hired as a loan officer at a retail bank is easier. However, since these loan officers are likely to be less knowledgeable, they are paid less than those working for larger financial institutions.
How Do You Save Money
When getting mortgage quotes, if two of the biggest drivers behind how much you will pay for your mortgage to be originated are what type of lender does your loan officer work at and how is your loan officer paid which one is best?
If it were me, and I were shopping for a loan officer I would start by asking them the direct question of how do you get paid?
And then listen very carefully to their answer, because understanding what is going on behind the scenes can sometimes make all the difference.
Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
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Mortgage Loan Officer Licensure And Certification
Whether you graduate with a bachelors degree or go the working route, you must obtain a mortgage loan originator license to become a fully qualified mortgage loan officer. To get your MLO, youll have to complete 20 hours of pre-licensure education and pass the Nationwide Multistate Licensing System & Registry exam.
You must also submit to a background and credit check and renew your MLO license each year by following the licensure requirements in your state.
While its not required, you may want to obtain a mortgage loan officer certification to propel yourself to the top of a prospective employers list. Several postsecondary schools and banking associations, such as the American Bankers Association and the Mortgage Bankers Association, offer courses, training programs, and certifications.
Is A Loan Officer Salary Worth It
We have shown you how a loan officer makes money, the education requirements for becoming a loan officer and career advancement for a loan officer. Being a loan officer is a lucrative career path with the right structure, relationships, and processing support.
You dont necessarily need a bachelors degree or experience to become a loan officer. In fact, you may be hired by a small mortgage broker even if you dont have any notable sales experience or a bachelors degree.
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How Mortgage Loan Originators Are Compensated First
Aug 28, 2018 Much like a real estate agent, MLOs negotiate their percentage fee commonly referred to as commission with their broker. At small boutique;
Compensation for mortgage officers can be based on commission, salary, or a combination of the two. BLS statistics show that, as of May 2017, the median average;
Most MLOs in North Carolina are paid a base salary plus commission. The potential to earn sales commission on every loan that goes through is the reason why;
How do mortgage loan officers get paid? Mortgage originators typically work solely on commission, getting paid only if the loan closes.
Dec 8, 2020 2. How does a mortgage broker get paid? Mortgage brokers are most often paid by lenders, sometimes by borrowers, but, by law, never both. That;
Is This Transaction In Your Best Interest
Its the customersright to question if the loan officers are acting in their best interest. A good point is to ask: What is the method ofloan officers compensation?
The loan officers usually get compensated in 2 ways:
Both of the above methods can create a conflict ofinterest. For example, because commissions are based on a percentage of theloan amount, some loan officers have incentive to stick you with higher loanamount to make their commission larger. That wasone of the reasons for the 2008mortgage crisis. Lenders aggressively authorized mortgages that most of theborrowers couldnt afford, while they made a considerableamount in commissions. The 2015 movie The Big Short is an excellent example of that particular case.
On the other hand, sales incentives or bonuses are amethod of compensation. Youve probably heard of the famous Wells Fargo casewhere they were ordered to pay over $185 million to settle allegations that theemployees open millions of unauthorized accounts to meet banks sales quotas and receive incentives. Now they arefacing inquiries by the U.S. Department of Justice. Although the case is notabout the mortgage industry, it indeed defines the negative impact of thesesales incentives.
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What Do You Need To Do To Become A Lo
Compared to many fields with similarly competitive pay, becoming a loan officer is a fairly straightforward process. Most loan officers earned a bachelors degree, often in finance, business, or business administration. However, not every position in the industry requires a four-year degree, so dont be discouraged if you dont have one. Instead, research certification options and college classes that could prepare you for the industry.
In order to become a loan officer, you will need to obtain a license. This process can vary from state to state, but generally, you will need to complete 20 hours of education, and then pass the NMLS National Test. If you want to see what you would need to do to become a loan officer in your state, check out this link for more info.;
You may also need to pass a criminal history background check, get fingerprinted, and pass a credit check.;
After Youre A LO
Once you are working as a loan officer, you will need to renew your state certifications every year. You will also need to retake the NMLS National Test.
An additional, optional step to take is pursuing additional certifications. Although it is not required, you can choose to boost your resume with certifications from The Mortgage Bankers Association or the American Bankers Association.;