Loan Officer Salary Can Vary Widely
- Similar to a real estate agents salary, a loan officers take home pay can range dramatically
- It all depends on how much you sell/close in a given year
- If youre a top loan officer, you can make a ton of money
- If youre just an average or underperforming LO, expect comparably lower salaries
Wondering how much a loan officer makes an hour? Or what the average mortgage loan officer salary is?
Well, take note that most loan officers do not receive a base salary, only commission, so they are paid for performance. Sales performance.
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 wage of $30.60 per hour, which isnt terrible by any stretch.
My assumption is that the number wont change a great deal in 2017 or beyond, not that I would focus on the numbers from the Bureau of Labor Statistics anyway.
A better gauge might be the quarterly reports from a company called LBA Ware, which has a ton of data on loan officer compensation.
They said the average LO produced 51% more in volume during Q3 2020 versus $1.7M per month in the same period in 2019.
And per-loan commission was 106 basis points in the third quarter of 2020, meaning the average LO made over $27,000 per month.
That works out to over $300,000 annually if theyre able to keep that up consistently.
If you break that down as an hourly wage, it could be very high if loan volume is solid and efficiency is high as well .
Education Training & Certification
This occupation requires some education, experience, and training.
- Education: You must generally have a bachelor’s degree in finance, economics, or a related field to work as a loan officer.
- Licensure: There are currently no specific licensing requirements for loan officers working in banks or credit unions, but licensing requirements for loan officers who work in mortgage banks or brokerages can vary by state. They must generally have a Mortgage Loan Originator license, however, which requires at least 20 hours of coursework and passing an exam, as well as a background check and a credit check.
- Training: Training is oftenbut not alwayson the job. Some firms have dedicated training programs for new hires, and several banking associations offer training programs as well.
The Market Is Steady And Growing
If you are considering a career in becoming a mortgage loan originator or mortgage broker, then you are in luck. Once you have obtained the necessary requirements, such as;mortgage loan originator license, the loan officer job market is estimated to increase by 8% between the years of 2014 and 2024. These days, the millennials will have entered the housing market and are looking for mortgage lending deals and the baby boomers will be nearly out. This will cause an increase in the loan officer job market and a gap for the younger generation to fill. So, if youre contemplating a career shift, now is the time to do it. Moreover, the actual need for mortgage loan originators tends to oscillate with the state of the economy. Now, nine years on from the 2008 financial crisis and the economy has started to heal, so more people are looking to purchase homes. Thus, the need for loan officers is set to further increase over the coming years.
According to a report from Black Knight Financial Services, the rate of foreclosures is continually decreasing 29% year-on-year. With this in mind once you have the necessary requirements, such as a mortgage loan originator license and other paperwork filed through the NMLS, your job is stablewithout the worry and fear of getting laid off in the coming years. In any case, this perk is a substantial one in the United States where many job markets are not as promising or guaranteed.
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How To Be A Top Producing Loan Officer
- Its simple really and theres no secret formula
- Work hard and close as many loans as possible
- You can accomplish this by solid networking and putting in the time
- Theres nothing magical about it, just strong work ethic
While there might be gimmicks and top 10 lists and classes that teach you how to sell, it really comes down to hustling. Honestly.
If youre committed to the business, you can be really successful and earn a ton of money. When I worked for a wholesale lender, there were Account Executives who sat around and complained, and others who just put their heads down and dialed the phone.
That latter group made a lot of money, while the complainers made average salaries and eventually quit. Ultimately, its about work ethic and drive.
All the other stuff, like education and the art of selling, will come with experience. You cant teach someone how to sell in a class, nor can you teach them everything about mortgages in a day or a week.
It takes time and real-life experience to master those things. But without motivation and hard work, it will mean very little.
So if you want to be successful as a loan officer, you need to work hard and network. Dont be shy, make calls, visit real estate offices and link up with real estate brokers, and eventually it will get easier and easier.
Sure, you might have some nervous calls and meetings early on, but once you gain confidence, itll become second nature and pay dividends.
How To Get The Job
DON’T OVERLOOK THE VALUE OF A DEGREE
Even when a college degree isn’t technically required, those who have them or have extensive experience, even in a related field, have the best prospects.
IT’S WHO YOU KNOW
Some firms and institutions expect loan officers to build their own client bases, so applying with a list of contacts and network referrals can set you apart from other, less prepared candidates.
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What Is A Mortgage Loan Originator
A mortgage loan originator is a person or institution that helps a borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process. An MLO can be a lending company, mortgage broker or loan officer.
What Are The Key Requirements To Becoming A Loan Officer
As previously mentioned, you are required to pass the National NMLS Mortgage License Exam. But there are a few other federal and state requirements that vary depending on where you will work.;
First and foremost, you must be at least 18 years of age to register with the Nationwide Mortgage Licensing System and Registry , which requires a background check.; Youll be able to take the exam once youve provided proof of your 20 hours of education.; Upon passing the exam youll have the necessary qualifications to become a loan officer!
But it doesnt stop there. The SAFE Act mandates that state-licensed mortgage loan originators complete eight hours of continuing education annually which must include: three hours of federal law and regulations and two hours of ethics, including instruction on fraud, consumer protection and fair lending.
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Loan Officer Definition Investopedia
A loan officer assists consumers and business people in choosing a loan product and applying for it. · This person is the main contact with the financial;
Loan officers advise, evaluate and authorize loans to people and businesses. Financing a college education, buying a new car and purchasing a home for your;
Loan officers meet with loan applicants and collect and verify all required financial documents. They determine if the person or business is qualified for a;
What Will My First Year Be Like As A Loan Officer
After completing the process of acquiring your state licensure and finding a job, there is a high probability that you will be assigned to work with a more seasoned loan officer for your first year as a loan officer.;;
During this time, 50% of your day will be spent growing your sales pipeline and the other 50% will be devoted to learning regulations and guidelines so that you know how to quickly and effectively guide your borrowers through the loan approval process.;;
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Communicates Well With Involved Parties
While a loan officer will advise you, crunch numbers and streamline your application process, their job involves a lot more than paperwork. A good loan officer will also communicate well with the other involved parties, such as the underwriter. Theyll act as your representative and stay in contact with everyone involved so you dont have to.
As such, you may want a loan officer who understands and connects with you. They should understand the needs and personalities of you and your family. If your loan officer understands what youre looking for, they can better help you find the best lending solutions.
Summary: Mlos Are Integral Members Of Your Home Buying Team
The role of a mortgage loan originator is to help shepherd your loan all the way from application through underwriting and to the closing table so you can get the keys or accomplish your financial goals.
An MLO can refer to both the person or people handling the loan origination process and the institution doing the loan funding. MLOs may work directly for mortgage lenders, or they may be a mortgage broker offering options for the several different institutions.
Every MLO must maintain state and/or federal licenses. Some licenses are maintained by the individual, while others are held by the lender themselves. Finally, MLOs are paid mostly on commission, although those working directly for lenders often receive an hourly rate or salary as well.
Hopefully, this has helped you pick up some understanding of how mortgage loan originators play a role in the process. If youre ready to get started, you can begin your application online or give us a call at 230-4553. For more on the mortgage process, keep reading our;Learning Center!
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Understanding What A Mortgage Loan Originator Does
Feb 26, 2021 A mortgage loan originator is a person or institution that helps a borrower get the right mortgage for a real estate transaction. The MLO;
Oct 2, 2020 What Does a Loan Officer Do? A loan officer decides which would-be borrowers are eligible to proceed to loan underwriting. The loans in question;
Whats A Typical Mortgage Loan Originator Salary
The average mortgage loan originator makes just over $63,000 per year, according to the U.S. Bureau of Labor Statistics.
But remember MLOs are typically not salaried, theyre paid on commission. So a mortgage loan officer making a lot of loans in high-priced cities or markets could take home much higher pay.
That said, some newer mortgage companies are doing away with the commission-based pay model for loan officers.
Better Mortgage, for instance, has done away with MLO commissions in a bid to make lending more transparent for borrowers. In Betters estimation, a no-commission model ensures loan officers always have the borrowers best interest in mind.
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Find A Loan Officer At Assurance Financial
At Assurance Financial, we have over 120 mortgage loan officers who work with our clients to find the best lending solutions. We service a loan from beginning to end, saving our borrowers time and making the entire process more convenient with the highest quality digital tools available. Were an independent, full-service lender and we enable our borrowers to purchase their dream homes, whether its their first home, a vacation home or an investment property.
We bring integrity and honesty to our work and strive to do whats best for our customers. Were licensed in 39 states and housed in 20 locations. Find the perfect loan officer with Assurance Financial and get pre-qualified before you begin the search for your dream home. Apply for a loan in under 15 minutes with our digital loan assistant, Abby, today!
What Is The Safe Act
A result of the 2008 financial crisis, the S.A.F.E Mortgage Licensing Act is a federal law that governs the requirements for issuing a license to any individual who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan application.;;
The law also establishes standards for loan officers to maintain their license with stipulations which dictate circumstances for which the licensure may be revoked.;
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Bring Expertise To Your Loan Process
Among a loan officers skills is expertise in the industry. Loan officers are licensed with the federal and state authorities, and they adhere to the regulations of lending money. Because regulations are so strict, loan officers must be highly knowledgeable about the lending process and the banking industry.
The loan process, especially for mortgages, requires a lot of paperwork. While completing the necessary paperwork, youll likely have several questions. A loan officer can offer their expertise to answer your questions and help you properly fill out the paperwork. Issues with the paperwork can delay the process of applying for a mortgage, so having a lender to guide you can help prevent delays.
When you work with a professional who has comprehensive knowledge about the work theyre doing for you, youll know youre in good hands and making informed decisions about your loan.
What Are The Benefits Of A Mortgage Loan Officer Job
There are many benefits of a mortgage loan officer job, such as job security and competitive pay. The salary for mortgage loan officer jobs is usually base pay plus commission. Financial institutions typically offer complete benefits packages to mortgage loan officers, including medical, dental, vision, and life insurance as well as retirement plans. Some companies provide additional perks like commission bonuses, flexible schedules, gym memberships, catered lunches, and extra vacation time.
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Mortgage Loan Officer Responsibilities Include:
- Analyzing complex financial data
- Resolving problems throughout application processes
- Building positive relationships with clients
Mortgage loan officer job requirements and responsibilities may vary with different employers. When crafting your own mortgage loan officer job description, be sure to tailor it to your needs.
Licenses Certifications And Registrations
Mortgage loan officers must have a Mortgage Loan Originator license. To become licensed, they must complete prelicensing courses, pass a national exam, and submit to background and credit checks. Licenses must be renewed annually, and individual states may have additional requirements. Check your;state licensing agency website for more information.
Several banking associations, including the American Bankers Association and the Mortgage Bankers Association, as well as a number of schools, offer courses, training programs, or certifications for loan officers. Although not required, certification shows dedication and expertise and thus may enhance a candidates employment opportunities.
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What Exactly Do Loan Officers Do
A loan officer works for a bank or independent lender to assist borrowers in applying for a loan. Since many consumers work with loan officers for mortgages,;
What does a Mortgage Loan Officer do? Mortgage loan officers gather clients financial information to review if they are eligible for;
Jul 12, 2021 A mortgage loan officer is a representative of a bank, credit union, or other financial institution who assists borrowers in the application;What Is a Mortgage Loan Officer? · What Is a Mortgage Broker?
Loan Officer Duties & Responsibilities
Loan officers’ responsibilities can depend on their area of specialization, but some common duties include:
- Find potential clients, individuals, or businesses who are in need of loans and cultivate their business.
- Meet with loan candidates to explain options and answer questions.
- Act as a salesperson, persuading clients to obtain loans from their institutions rather than anywhere else.
- Help clients through the process of applying for loans.
- Analyze and verify loan applications to determine clients’ creditworthiness.
- Ensure that loans meet federal and state standards and requirements.
How To Become A Mortgage Loan Officer
What Does a Mortgage Loan Officer Do? Mortgage loan officers focus exclusively on real estate loans for individuals and businesses. They usually work for;
Feb 26, 2021 Do you get better mortgage rates from a mortgage broker or a bank? and HUD says that complexity does drive up lender costs;
MBA is the only association representing all segments of the real estate finance industry. We unite the interests of diverse stakeholders, from main street;
Tactics To Watch Out For
As mentioned above, mortgage brokers may not always come up with the best possible offer if it’s not in their financial self-interest to do so.
Loan officers may have similar conflicts. Bear in mind that loan officers are essentially salespeople who get paid for selling you somethingspecifically, a loan. The loan that is best for you and the one that’s most lucrative for them may be two different things.
For example, be wary if a loan officer seems to be trying to steer you into an adjustable-rate mortgage . ARMs can be a good choice for certain people, especially those who know they won’t be in their home for very long. However, if you are planning to stay in your home for more than seven years or so, then an ARM may not be a very good choice, since the interest rate could dramatically increase over that period. A fixed-rate loan would be safer, even if it starts out with a higher interest rate.
Because it behooves loan officers to sell as many mortgages as possible, some may be tempted to steer you into an ARM with the idea of persuading you to refinance with a new loan in a year or two. If you find yourself in that situation, before you take them up on the offer you’ll want to find out:
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