How Much Can an Entry Level Mortgage Loan Originator Make?

How Much Can an Entry Level Mortgage Loan Originator Make?

Loan Officer Salaries

The median annual wage for a loan officer in 2020 is $63,960. The lowest 10% of wage earners in this field earn a yearly salary of just under $32,820, but earners in the top 10% earn an average salary of over $132,290.

Wages vary based on the employer as well as job performance. Some loan officers are paid a flat salary or an hourly rate, but others earn commission on top of their regular compensation. Commissions are based on the number of loans these professionals originate or on how their loans are repaid.

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4. 4 Perks to Being a Mortgage Broker or Loan Officer

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 # (9)

Nov 4, 2016 — Mortgage loan officers typically get paid 1% of the total loan amount. We explore the reasons why loan officer commission is bad for (10)

Loan officers work with a lending institution and their borrowers to provide consultation, application, underwriting, approval, and deal-closing services on (11)

On-the-job Training, Moderate-term on-the-job training. Number of Jobs, 2019, 316,900. Job Outlook, 2019-29, 3% (As fast as average).(12)

The average annual income for a mortgage loan officer in North Carolina is $75,570, according to the U.S. Bureau of Labor Statistics. However, keep in mind that (13)

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

What Is the Average Salary for a Loan Officer Assistant?

There isn't an average salary for a loan officer assistant, as it depends on too many factors from the company where the assistant is employed, if they work hourly or for an annual salary, and experience. According to the BLS, financial clerks who may do similar work as an assistant to a loan officer earn a median salary of $41,520.

6. Find the Best Mortgage Loan Originators

“I pretty much stay in touch with my clients from beginning to end,” says Alcide. How to Find a Mortgage Loan Originator. There are two things you should do (17)

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 (18)

What do Mortgage loan officers do? Find out how much Mortgage loan officers make, what to study, and whether it’s the right job for you.(19)

Feb 26, 2021 — Mortgage loan originators will not only fund your loan, but they’ll also help walk you through the process to make sure you make it to the (20)

What’s 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, they’re 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 Better’s estimation, a no-commission model ensures loan officers always have the borrower’s best interest in mind.

What does a mortgage loan originator do?

Mortgage loan originators must have a comprehensive knowledge of lending products, banking industry rules and regulations, and the required documentation for obtaining a loan.

“Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses”, according to the U.S. Bureau of Labor Statics.

This requires excellent interpersonal skills.

A good loan officer makes his or her clients feel at ease during the process, while still educating them on their decision.

Borrowing money can be a nerve-wracking experience. A good loan officer makes his or her clients feel at ease during the process, while still educating them on their decision.

Mortgage loan officers also collect and verify all required financial documentation from applicants.

They’ll use this information to determine if a mortgage borrower is qualified for a loan from the standpoint of credit-worthiness, income, and assets. They’ll also help borrowers decide which type of loan is right for them based on their finances and purchase price.

The profession involves a lot of paperwork and managing logistics throughout the loan process.

How Much Does a Loan Officer Make an Hour?

  • Some loan officers are paid hourly if they work at big retail banks
  • And may not actually be paid on their loan volume
  • But many loan officers are paid commission-only in lieu of a base salary
  • Which you can break down into hourly wages at year-end (it may often be much better than a guaranteed hourly wage)

As noted, MLOs are typically not paid hourly, and are instead paid commission for the loans they bring in and fund.

This means total compensation can range significantly based on the sales performance of the loan officer in question. It also depends on how much a loan officer makes per loan.

If the LO works for a small shop and has very little support, they might make a mortgage point or two per loan. By that, I mean 1-2% of the loan amount, which may or may not be split with their broker or mortgage company.

On a $500,000 loan, we’re talking $5,000 – $10,000, less any costs and splits. As you can see, the money can be really good if you’re even mildly successful in this industry, especially if you operate in an expensive region of the country.

Conversely, those who work at big banks and credit unions and are essentially fed a constant stream of clients via walk-ins, incoming phone calls, and the like, may only receive a small commission relative to those going it alone.

For example, we might be talking about 20-30 basis points, or bps, per loan closed. Represented as a fraction, that’s .20% to .30% of the loan amount. Using the same $500,000 loan amount, that’s $1,000 to $1,500 per loan. Still good, but not as lucrative as our earlier example.

However, this latter group might get a small base salary, along with benefits like 401k and insurance and so forth. And as noted, they get leads, which can be huge for the individual who is unable or unwilling to chase after new business.

If you work for a wholesale mortgage lender and are an Account Executive (the LO equivalent), the commission might be even lower, sometimes less than 10 bps per loan.

Lastly, let’s talk about quotas. Sometimes the company you work for will have a monthly quota that must be met to get paid the higher rates of commission.

So if you don’t close X million per month, you might get paid a lot less, possibly just a fixed dollar amount per loan, such as $250 or $500.

Be sure to take a good look at the company’s compensation package so you fully understand all the particulars. And if you don’t, speak up and ask for clarification.

Work Environment About this section

Most loan officers work full time.

Most loan officers work full time.

Loan officers held about 322,100 jobs in 2020. The largest employers of loan officers were as follows:

Credit intermediation and related activities 82%
Management of companies and enterprises 4
Automobile dealers 3

The credit intermediation industry includes commercial banks, savings institutions, and mortgage companies.

Loan officers who specialize in consumer loans usually work in offices. Mortgage and commercial loan officers may work outside the office and meet with clients at their homes or businesses.

Work Schedules

Most loan officers work full time, and some work more than 40 hours per week.

Mortgage Loan Originator I – Phoenix

Tucson , Arizona Vantage West Credit Union

… cted to perform. Equal opportunity Employer Salary range is $17.85 – $26.78/hour. Salary is dependent on candidate’s experience and …

Loan Officer Job Description

  • Sell, sell, sell! Always be closing!
  • That’s pretty much the job description of a loan officer
  • But you also have to be well-versed in customer satisfaction, mortgage lingo, and product knowledge
  • And stay up-to-date on the many rules/regulations involved

First off, a loan officer may be referred to as a mortgage planner, lending officer, MLO, mortgage specialist, dedicated lending associate, loan consultant, loan agent, mortgage professional, senior of any of these, or junior of any of these.

There are lots of creative names for the position depending on the company in question, but the job description will likely be the same regardless.

A loan officer may come into work in the late morning around 9 or 10am and work until 6-9pm.

The time may be structured to work around when companies are allowed to solicit consumers in their homes. The traditional peak hours for sales calls take place in the early evening, between 6pm and 9pm.

Of course, you could also be a go-getter who arrives at 6am and only works until the early afternoon. There is certainly flexibility when it comes to working hours, though it does depend on the type of company you work for.

If you work for a large company, such as a depository bank, credit unions, or a mortgage banker, chances are you’ll work the typical 9-5 schedule since bank branches are only open during those hours.

If you work for a smaller mortgage company, or a broker, you might be able to set your own hours and do whatever you please.

This has to do with compensation, as the former will likely get a base salary along with commission, while the latter will likely be a commission-only employee.

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Mortgage brokers won’t care when you come in or leave as long as you’re closing loans.

Money aside, the culture will be a lot different at a large lending institution versus a small shop. If you can stomach a dress code and an uber-corporate environment, the bank setting might work out nicely.

If you’re the type who would prefer to run your own business, but don’t have the knowledge or the wherewithal, a small shop could be a desirable place to be. At least to start.

Education Requirements

Loan originators usually hold a bachelors degree and have a strong understanding of business accounting and finance. The BLS does note, however, that individuals who don’t have a four-year degree may still be able to become loan officers if they have work experience in banking, customer service or sales. Mortgage officers must also obtain a license to practice. The licensing process requires 20 hours of coursework, passing a licensing exam and submitting to a criminal background check.

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 salary for mortgage loan originators was $64,660. This means that 50 percent of loan officers made more than this amount and the other half made less. The bottom 10 percent of earners made less than $32,670 annually and the top 10 percent earned more than $135,590.

Industry

According to the BLS, loan officers typically work from offices, either in bank branches or other professional facilities. However, they may have to commute regularly to meet with clients elsewhere. Most work full-time.

How much should you be earning?

Get an estimated calculation of how much you should be earning and insight into your career options. See more details

Highest paying cities for Mortgage Loan Originators in United States

  1. Irvine, CA $308,188 per year 19 salaries reported

  2. Atlanta, GA $297,452 per year 18 salaries reported

  3. Detroit, MI $293,367 per year 12 salaries reported

  1. Houston, TX $289,353 per year 45 salaries reported

  2. Charlotte, NC $288,683 per year 13 salaries reported

  3. Phoenix, AZ $288,307 per year 41 salaries reported

  1. Plano, TX $287,011 per year 9 salaries reported

  2. Scottsdale, AZ $281,301 per year 29 salaries reported

  3. Jacksonville, FL $271,518 per year 24 salaries reported

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Build a Lucrative Career for Yourself by Becoming a Mortgage Loan Officer

Becoming a mortgage loan officer can offer you a rewarding career with plenty of room for growth and stable income. In addition to the generous compensation, you have the opportunity to advance your career over the years and gain additional earning opportunities. If you’re willing to put in the effort, your career as a mortgage loan officer can be highly lucrative. Diehl Education is your top resource for becoming a mortgage loan officer and advancing your career. Our services are designed to help you with everything from preparing for your NMLS test and figuring out how to renew a license, to gaining new skills and knowledge that will help you move up in your position (and payscale).

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