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What the Future Holds for Loan Officers
So now as we lie in the wake of the housing bubble bust, are loan officers still making money? The answer is a resounding YES, but the number of loan officers has probably been cut in half, if not more in the past few years or so.
At the same time, the quality of mortgage loans at the moment isnt what is once was a few years ago.
It seems most of the smart money already refinanced, or made home purchases before values went up. And many of the remaining deals are tricky and/or riddled with hurdles and low credit scores.
In truth, it can always feel that way when youre trying to get a home loan approved a mortgage loan originators typical day will never be easy.
But theres always an opportunity for a loan officer, even if the market is in a down cycle or a lull. Even if mortgage rates arent as low as they once were.
What Does A Loan Officer Do On A Daily Basis
- Selling is the main focus of a loan officer
- That means bringing in new customers to apply for home loans
- Whether its a refinance loan or a purchase loan
- So you can earn a commission when it eventually funds
The broker or bank, or whomever employs the loan officer, may provide sales leads to the loan officer, or they may be completely on their own when it comes to acquiring business, making up their own sales and marketing to pitch potential borrowers.
If you work at a large bank or call center, you may be fortunate enough to just take incoming phone calls.
That means youll sit in a cubicle all day and field phone calls. You could also be required to follow-up with customers who expressed interest.
The good part is that you wont have to find prospects on your own. That can be the hardest part.
If you work for a broker or a small company, you may still be provided with leads, though the quality could be less than desirable. That means you will have to network, make contacts, and market yourself and your services.
This entails trying to get individuals to finance home purchases or refinance their existing mortgages. Thats it. When that happens, you generally get paid.
Often, loan officers will implicitly or explicitly partner with a real estate agent or office so they can provide financing to their home buying prospects.
If youve ever purchased a home, youve likely had the preferred lenders contact info thrown your way when it comes time to fill out a loan application.
Do Mortgage Brokers Make More Than Loan Officers
While their incomes can vary widely by experience, the available data indicate that mortgage brokers tend to earn more on average than mortgage loan officers. For example, Payscale reports an average base salary of $49,369 for mortgage loan officers vs. $58,304 for brokers. Similarly, Glassdoor reports an average base salary of $43,241 for mortgage loan officers vs. $63,469 for brokers.
In many cases, mortgage brokers may have begun their careers as loan officers but later broke off on their own for the opportunity to earn a higher income or enjoy greater independence.
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Here Are The Latest Data On How Much Money Mortgage Brokers Earn
Mortgage brokers are licensed professionals who connect borrowers with lenders but do not issue mortgages themselves. For each deal that they arrange, they typically receive a payment that equals 1% to 2% of the loan amount from either the borrower or the lender. This article looks at the latest available data on how much mortgage brokers can earn.
Submitting A Complete Application
The New York State Department of Financial Services accepts new Mortgage Loan Originator applications through the Nationwide Mortgage Licensing System . All new applications for licensure must be submitted through the online NMLS application process.
To ensure that your application is received, acknowledged as complete, and processed, please follow the instructions below. No application shall be deemed to be complete until all required information, documents, and fees have been received. If an application is determined to be incomplete, you will receive written notification identifying the items and matters that must be addressed for the Department to continue the application review process. Applicants will then have 30 days to submit missing documents before the application is considered withdrawn. Applicants who have applications withdrawn must repay applicable fees and resubmit all documentation to the Department to restart the process.
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Job Description For Mortgage Loan Officer Iii
Mortgage Loan Officer III 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 III assists buyers in the purchase process through closing. Requires a bachelor’s degree. Additionally, Mortgage Loan Officer III typically reports to a manager or head of a unit/department. The Mortgage Loan Officer III contributes to moderately complex aspects of a project. Work is generally independent and collaborative in nature. To be a Mortgage Loan Officer III typically requires 4 to 7 years of related experience. … View full job description
Mortgage Loan Officer Iisalary In New York Ny
How much does a Mortgage Loan Officer II make in New York, NY? The average Mortgage Loan Officer II salary in New York, NY is $65,254 as of September 26, 2022, but the range typically falls between $46,777 and $97,442. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.
|10th Percentile Mortgage Loan Officer II Salary||$32,078|
|25th Percentile Mortgage Loan Officer II Salary||$46,777|
|50th Percentile Mortgage Loan Officer II Salary||$65,254|
|75th Percentile Mortgage Loan Officer II Salary||$97,442|
|90th Percentile Mortgage Loan Officer II Salary||$126,747|
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Mortgage Loan Officer Salary In New York
How much does a Mortgage Loan Officer make in New York? The average Mortgage Loan Officer salary in New York is $60,345 as of September 26, 2022, but the range typically falls between $43,198 and $89,483. Salary ranges can vary widely depending on the city and many other important factors, including education, certifications, additional skills, the number of years you have spent in your profession.
- Adjust Mortgage Loan Officer Salary:
Finding Mortgage Loan Originator Jobs
Once youve done your Pre-Licensing education , passed your NMLS exam, completed all of your states application requirements, have been granted a license, and received a sponsor, the only thing left to do is start your career as a mortgage professional! If you need assistance with landing your first MLO job, National Mortgage Staffing and Mortgage Banking Jobs are great resources to utilize in your job search.
Another way to get your foot in the door is by bringing your resume into different mortgage offices. With low mortgage rates and a hot real estate market, MLOs are in demand, so getting your name out there is a great start. Beginning as a Mortgage Loan Originator Assistant or Loan Processor can also be a good way to gain experience and start working your way up.
All in all, becoming and staying a Mortgage Loan Originator can be a highly lucrative career. The longer you practice, the more chances you have to earn additional income, set your own hours, and negotiate your commission. With the real estate market as hot as it is today, there are many opportunities for MLOs in each state across the country.
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Mortgage Loan Originator Application Resources
To implement the provisions of the Secure and Fair Enforcement Mortgage Licensing Act , the Department requires MLOs to:
- Submit an application through the Nationwide Mortgage Licensing System
- Complete 20 hours of NMLS approved Pre-licensing Education Courses, including 3 hours of New York law
- Pass the SAFE Mortgage Loan Originator Test, consisting of a National Component with Uniform State Content.
- Submit a Surety Bond and Surety Bond Certification Form, upon approval of the application.
Bank Loan Officer Salaries
The loan officers working for larger, well-known banks are paid differently than those who work for smaller mortgage brokers or banks. These banks will pay a base salary to the loan officer and a bonus amount based on the total loan amount instead of the fees on a file.
Suppose a loan officer working for a large bank helps a consumer with their mortgage and the loan amount comes to $100,000. If the loan officer is paid 25 basis points , they would make 25 bps on $100,000, or $250.
Working with loan officers who work for a large bank has two advantages. The first is that they have a well-known name behind them. The second is that lenders of these loan officers are often times willing to originate a loan at a loss.
The disadvantage of working with loan officers who work for large banks is that they usually dont have much flexibility when it comes to rates and fees.
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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.
Being A Loan Officer Can Be Really Lucrative
- There are few jobs other than doctors, lawyers, and sports stars
- That pay several hundred thousand dollars a year in salary
- Top loan officers have the potential to make that kind of money too
- And even average ones can make six-figures annually during good years
If a mortgage loan officer gets just one of those deals to go through, it often equates to a huge payday, sometimes as much as a few months salary working a minimum wage job or other lower paying jobs.
So thats the incentive, big money. But there are a number of questions you need to ask yourself before setting out in the mortgage industry as a loan officer.
First and foremost, it is not an easy job. Sure, a mortgage broker or bank may tell you that its simple. And yes, you may not have to work very hard in the traditional sense, or take part in any back-breaking work.
But factor in the stress, the near misses, lost deals, the shots to your ego, and the wheel-spinning and it isnt as effortless as they may make it out to be.
You will see deals fall through and you will waste a lot of time. You will have mental breakdowns as loans slip through your fingers, and brokers and real estate agents scream at you as deadlines close in.
You will undoubtedly make mistakes, which will require a phone call to the borrower to let them know you cant do the deal. It will be embarrassing and unpleasant.
All that aside, lets look at a loan officers typical day, not that any day is ever typical
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Occupational Employment And Wage Statistics
The Occupational Employment and Wage Statistics program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link below go to OEWS data maps for employment and wages by state and area.
Glassdoor Economist Pay Overview
Jobs in finance and accounting are expected to see continued demand, with employment growth linked to the health of the broader economy. These jobs will continue to offer above average pay but usually require higher education or certification to enter the field. While automation will replace many common tasks, it is not expected to reduce the need for these employees it will instead allow them to focus on core soft skills like advising clients and analyzing trends.
The average salary for a Loan officer in US is $56,987 per year based on 3,938 salary contributions, which is 0.23% less than the salary for a Loan officer in New York City, NY. The cost of living and the local demand for the work are among the factors affecting wages. The top 3 companies in US where a Loan officer gets the highest compensation are Southern Trust Mortgage, First American Financial Corporation and Obsidian Financial Services, Inc. Bigger companies typically pay 35% more than smaller companies for a Loan officer.
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Mortgage Loan Officer Iiisalary In New York Ny
How much does a Mortgage Loan Officer III make in New York, NY? The average Mortgage Loan Officer III salary in New York, NY is $97,513 as of September 26, 2022, but the range typically falls between $85,307 and $124,382. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.
|10th Percentile Mortgage Loan Officer III Salary||$74,195|
|25th Percentile Mortgage Loan Officer III Salary||$85,307|
|50th Percentile Mortgage Loan Officer III Salary||$97,513|
|75th Percentile Mortgage Loan Officer III Salary||$124,382|
|90th Percentile Mortgage Loan Officer III Salary||$148,844|
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
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What Does The Future Hold For Loan Officers
Lastly, let me point out that because of the way technology is going, the loan officer position might be at risk in the near future.
According to the site willrobotstakemyjob.com, loan officers have a 98% chance of losing their jobs to robots, aka automation.
At the moment, there are around 310,000 loan officers nationwide, and 8% growth is actually expected between now and 2024.
But at some point, they may be phased out thanks to disruptors in the tech and mortgage industry. In fact, were already seeing it with companies like 360 Mortgage Group and Homie.
So thats something to keep in mind as well, though as mentioned, it might be possible to make moves to other related positions that open up as a result of technological advances.
Mortgage Loan Officer Isalary In New York Ny
How much does a Mortgage Loan Officer I make in New York, NY? The average Mortgage Loan Officer I salary in New York, NY is $55,704 as of September 26, 2022, but the range typically falls between $45,539 and $67,764. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.
|10th Percentile Mortgage Loan Officer I Salary||$36,284|
|25th Percentile Mortgage Loan Officer I Salary||$45,539|
|50th Percentile Mortgage Loan Officer I Salary||$55,704|
|75th Percentile Mortgage Loan Officer I Salary||$67,764|
|90th Percentile Mortgage Loan Officer I Salary||$78,743|
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