How Much Does a Mortgage Loan Originator Make?
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A mortgage loan originator is the first point of contact between a borrower and a lender. The median annual salary for a mortgage loan originator was $64,660 in 2017.
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Mortgage Loan Originator Salaries
A mortgage loan originator is a professional who helps borrowers obtain financing to purchase a home. The median annual salary for a mortgage loan originator is $67,310, which means that half of all loan originators earn more than this amount and half earn less.
National Salary Statistics
The median annual wage for mortgage loan originators was $64,660 in May 2019. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $32,290, and the highest 10 percent earned more than $136,610.
Most mortgage loan originators work full time. Because business conditions affect the number of loans that lenders approve for funding, mortgage loan originators may experience periods of unemployment when business is slow.
Top Paying States
According to the U.S. Bureau of Labor Statistics, the top paying states for mortgage loan originators are as follows:
1. Hawaii – $103,520 per year
2. Massachusetts – $102,490 per year
3. Alaska – $94,860 per year
4. Washington – $93,980 per year
5. Colorado – $88,580 per year
Local Salary Statistics
Mortgage loan originators typically earn salaries in the range of $33,000 to $108,000 annually, with a median salary of $64,000 per year. However, earnings can vary widely depending on experience, job location, and demand for mortgage loan originators. In some cases, annual bonuses and commission payments can increase total earnings by as much as $20,000 or more.
Mortgage Loan Originator Job Outlook
Job Growth Trends
Mortgage loan originators, sometimes called mortgage loan officers, are responsible for guiding people through the process of acquiring a mortgage loan. They work with potential borrowers to assess their creditworthiness and help them select the right type of mortgage loan.
Mortgage loan originators typically work for banks, credit unions, and other financial institutions. Some may also work for mortgage brokers. Most work full time, and some may work evenings and weekends to accommodate potential borrowers’ schedules.
Employment of mortgage loan officers is projected to grow 8 percent from 2018 to 2028, faster than the average for all occupations. The demand for mortgage loans is expected to continue as people look for homes and as industries recover from the effects of the COVID-19 pandemic.
Top Growing States
The top five fastest-growing states for mortgage loan originators are projected to be:
Utah
Arizona
Florida
Idaho
Texas
The Bureau of Labor Statistics expects the number of loan originators to increase by 11 percent from 2016 to 2026, which is about as fast as the average for all occupations. The growth will be driven by the continued expansion of the housing market and baby boomers aging into retirement.
Local Job Growth Trends
Mortgage loan originators are expected to see a 7% job growth from 2016 to 2026, about as fast as the average for all occupations.1 Due to the nature of the job, most of these positions will be located in or near large metropolitan areas.2
Although many traditional banks are Stepping away from offering mortgages, credit unions and other lending institutions are beginning to enter the market. In addition, due to concerns about the economy and recent financial crises, more people are choosing to remain in their current homes rather than sell them and purchase new ones.3
This is good news for loan originators, since they typically earn a commission on each loan they originate. The median annual wage for loan officers was $63,650 in 2016.4 The top 10% of earners made more than $130,710, while the bottom 10% made less than $31,700.5. Loan officers typically need at least a bachelor’s degree and on-the-job training to become licensed.6.
Mortgage Loan Originator Education and Training
A mortgage loan originator is a professional who helps borrowers find the best mortgage loan for their needs. Mortgage loan originators typically work for banks, credit unions, and mortgage companies. They help borrowers by taking their loan application and supporting documentation, and then working with the lender to get the loan approved.
Required Education
In order to become a mortgage loan originator, you will need to complete 20 hours of pre-licensure education from an approved provider. The courses must cover specific topics related to mortgage origination, and you must pass a final exam with a score of 75% or higher in order to receive your certification.
Once you have completed your pre-licensure education, you will then need to take and pass the National Mortgage Licensing System (NMLS) Uniform State Test (UST). This exam is administered by Prometric and is broken down into two parts: a national component and a state-specific component. After passing both parts of the exam, you will be able to submit your application for state licensure.
It is important to note that each state has its own set of requirements for mortgage loan originators, so it is important to check with your state’s regulatory body to ensure that you are meeting all of the necessary requirements.
Recommended Education
A mortgage loan originator (MLO) is a professional who helps individuals and businesses apply for loans to purchase real estate. MLOs are also known as loan officers or mortgage brokers.
In order to become an MLO, you will need to complete a certain amount of education and training. The recommended education for an MLO is a bachelor’s degree in business administration or finance, although some employers may prefer candidates who have completed a master’s degree. In addition to your educational requirements, you will also need to obtain a license from your state in order to practice as an MLO.
Once you have met all of the education and training requirements, you will be ready to begin your career as a mortgage loan originator.
Mortgage Loan Originator Certification
Mortgage loan originators, also called mortgage loan officers, are responsible for originating, or creating, mortgage loans. They work with borrowers to gather information and complete loan applications. They also advise borrowers on their best options and work with them to choose the right type of loan.
Most mortgage loan originators need at least some college education. Many have a bachelor’s degree, although some have only completed some college coursework. Many also complete a formal training program offered by their employer. Some states require mortgage loan originators to be licensed.
Many employers prefer to hire mortgage loan originators who are certified by the Mortgage Bankers Association (MBA). To earn MBA certification, candidates must have at least three years of experience and complete an intensive training program.
Mortgage Loan Originator Job Duties
Mortgage loan originators typically work for banks, mortgage companies, or credit unions. They help individuals and businesses secure financing for real estate purchases. A mortgage loan originator’s job duties may include meeting with clients, taking applications, and processing loan paperwork.
Job Duties
A mortgage loan originator (MLO) is the direct point of contact with potential borrowers who are seeking a home loan. The main goal of an MLO is to assist these individuals in finding the best possible mortgage option to suit their specific needs and financial situation.
The duties of an MLO typically include:
-Meeting with potential borrowers to assess their financial situation and mortgage needs
-Providing potential borrowers with information about the different types of mortgage loans available
-Calculating estimated loan payments and providing this information to potential borrowers
-Working with potential borrowers to complete a loan application
-Submitting complete loan applications to lending institutions for approval
-Follow up with lending institutions regarding the status of submitted loan applications
-Assisting potential borrowers throughout the entire loan process, from application to closing
Work Schedule
Mortgage loan originators typically work full time. Many work more than 40 hours per week. Work hours may include evenings and weekends, because that is when potential borrowers are available. Some loan originators may be employed by financial institutions, while others may work for themselves as independent contractors.
Work Environment
Mortgage loan originators typically work in an office environment, although some may work from home. They typically work full time and may occasionally work overtime to meet deadlines.
