Mortgage Loan Officer Salary in the USA
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 that’s the incentive, big money.
The average yearly salary for a loan officer in 2021 was $73,650 per year according to the jobs website Indeed. According to the Bureau of Labor Statistics, the lowest 10% of wage earners in this field earn a yearly salary that is just under $32,820, but earners in the top 10% earn an average salary of over $132,290.
Pitching government loans, top mortgage officers can make millions a year, according to Jim Cameron, senior partner at Stratmor Group, a mortgage industry advisory firm.
The qualifications that you need to get a job as a loan officer with no experience include a bachelor’s degree in a field like finance, business, or accounting. Employers expect a new loan officer to have a Mortgage Loan Originators license (MLO) from the Nationwide Mortgage Licensing System.
5 Best-Paying Cities for Loan Officers
The metropolitan areas that pay the highest salary in the loan officer profession are Stockton, Santa Maria, Yuba City, Lubbock, and New York.
- Stockton, California: $117,330
- Santa Maria, California: $113,480
- Yuba City, California: $113,340
- Lubbock, Texas: $108,490
- New York, New York: $106,090
51% of Loan Officers in the United States think their salaries are enough for the cost of living in their area. You deal with stress well. Like any job working with the public, the position of a loan officer can sometimes be stressful. If you can deal with that stress in a calm manner, your career as a loan officer is likely to be lucrative.
What does a Mortgage Loan Officer do? Mortgage loan officers gather clients’ financial information (e.g. taxes, debts) to review if they are eligible for granting mortgage loans. They complete mortgage loan applications based on national and local financial standards and review their progress.
Loan officers are the main point of contact for borrowers throughout the mortgage application process at almost every mortgage lender. That’s an important job, right? In return for this service, the typical loan officer is paid 1% of the loan amount in commission. On a $500,000 loan, that’s a commission of $5,000.
Is a mortgage loan officer a good job?
Yep, it’s a potentially high-paying job that also welcomes newbies. In fact, mortgage loan officers don’t even need a bachelor’s degree, let alone a high school diploma to gain employment with certain brokers and mortgage lenders.
A person seeking to become a mortgage loan originator (MLO) must be at least 18 years old. Register with the Nationwide Mortgage Licensing System and Registry (NMLS). Take 20 hours of prelicensure education courses approved by NMLS.
Loan officers are compensated either “on the front”—via fees you pay upon getting your loan—and/or “on the back,” a commission from their institution (which you indirectly pay via a higher interest rate). … Using a mortgage broker might find you better terms than dealing with an individual loan officer.
Though most loan officers work at banks and other lending institutions, a growing number are employed in a home-based operation. They are still representatives of the larger organization, but are allowed to carry out the bulk of their work from a home office.
Loan officers typically need at least a bachelor’s degree, preferably in a business-related field such as finance, economics or accounting. Mortgage loan officers need a mortgage loan originator license, which requires passing an exam, at least 20 hours of coursework and background and credit checks.
Passing the exam is not easy… in fact, according to NMLS SAFE test passing rate, the first time pass rate is 54%, and only 46.7% for subsequent attempts. … If an individual fails the test, they have to wait 30 days before being eligible to retake the exam.
Here are the basic steps you need to take to become a licensed broker:
- Step 1: Take the pre-licensure class. All mortgage loan brokers must be licensed. …
- Pass the NMLS test. You must pass something called the SAFE Mortgage Loan Originator Test. …
- Step 3: Get to work. …
- Step 4: Continue your education on mortgage lending.
How much percent does a loan officer make?
1%. The loan officer has the most important job as they are the primary contact for borrowers throughout the process of a mortgage application. As a return for their service, these loan officers usually get paid 1% of the loan amount as their 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.
Mortgage Loan Officer Salary in the USA in 2021
The average yearly salary for a loan officer in 2019 was $73,650 per year according to the jobs website Indeed. According to the Bureau of Labor Statistics, the lowest 10% of wage earners in this field earn a yearly salary that is just under $32,820, but earners in the top 10% earn an average salary of over $132,290.
Employment of loan officers is projected to grow 3 percent from 2019 to 2029, about as fast as the average for all occupations. Although the demand for loan officers will increase as the overall economy grows, the decline of bank branches may moderate employment growth.
Loan Officer: What’s the Difference? A loan officer offers mortgage options only from the financial institution they work for, while a mortgage broker acts as a matchmaker between you and a number of different mortgage lenders.
As of Mar 9, 2021, the average annual pay for a Mortgage Loan Officer in the United States is $73,756 a year. Just in case you need a simple salary calculator, that works out to be approximately $35.46 an hour. This is the equivalent of $1,418/week or $6,146/month.