How Much Do Loan Officers Make?
Loan officers typically work in banks, credit unions, and mortgage companies. They help people obtain loans by taking their financial information and determining which type of loan is best for them. The median annual salary for loan officers is $63,740.
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What is a loan officer?
A loan officer is a professional who helps people obtain loans from banks and other financial institutions. A loan officer typically works for a bank or other lending institution and is responsible for approving or denying loan applications.
Loan officers typically earn a salary plus commission. Commissions are based on the amount of money lent and can range from a few hundred dollars to several thousand dollars. The average loan officer earned a salary of $63,650 in 2017, according to the U.S. Bureau of Labor Statistics.
Loan officers must be licensed in most states. To become licensed, loan officers must pass an exam that tests their knowledge of state and federal lending laws.
How much do loan officers make?
Loan officers typically work in banks, credit unions, and mortgage companies. They help individuals and businesses obtain funds from lenders. Loan officers typically earn a salary and commissions on the loans they originate. The median annual salary for loan officers was $63,730 in May 2019, which means that half of loan officers earned more than this and half earned less.
National average salary for loan officers
As of May 2020, the national average salary for loan officers was $63,270 per year, or $30.54 per hour. The top 10 percent of earners made more than $104,530, while the bottom 10 percent earned less than $33,470.
Top-paying industries for loan officers
Loan officers earned a median annual salary of $64,660 in 2016, according to the U.S. Bureau of Labor Statistics. On the low end, loan officers earned a 25th percentile salary of $47,780, meaning 75 percent earned more than this amount. The 75th percentile salary is $85,580, meaning 25 percent earn more. In 2016, 298,700 people were employed in the U.S. as loan officers
States with the highest and lowest salaries for loan officers
The salary for loan officers varies widely depending on the state that they work in. The states with the highest salaries for loan officers are California, Colorado, District of Columbia, Maryland, and Massachusetts. The states with the lowest salaries for loan officers are Arkansas, Iowa, Mississippi, North Dakota, and Oklahoma.
How to become a loan officer
To become a loan officer, you’ll need at least a bachelor’s degree in finance, economics, or a related field. Many loan officers also have a master’s degree in business administration (MBA). You’ll also need to complete on-the-job training. After you’ve completed your education and training, you’ll be able to start working as a loan officer.
Education and training requirements
Education and training requirements will vary by employer, but loan officers typically must have at least a bachelor’s degree. Some banks and lending institutions may require loan officers to be certified by The Mortgage Bankers Association or another professional organization. In addition, loan officers must complete continuing education courses on an ongoing basis to stay current on industry changes and developments.
Licensing requirements
Loan officers need to be licensed in most states. Licensing requirements vary by state but most states require loan officers to take at least 20 hours of pre-licensing education. They also must pass a state-specific exam and complete a federal background check. Some states also require loan officers to complete continuing education courses on an ongoing basis to renew their licenses.
In addition to state licensure, some loan officers may choose to seek voluntary certification through the National Association of Mortgage Professionals (NAMP). The Certified Mortgage Loan Officer (CMLO) designation requires 25 hours of coursework and passing an exam. Certification must be renewed every two years through continued education or re-examination.
Helpful skills and experience
While formal education is not required to become a loan officer, completing some college coursework or obtaining a degree in finance, business administration, economics or a related field can be helpful. Many loan officers complete on-the-job training programs lasting several months to a year. Employers typically provide new loan officers with study materials and access to online courses, and then gradually give them more responsibilities as they demonstrate their ability and knowledge.
Some loan officers move into management positions or open their own businesses after several years of experience. Branch managers at banks and credit unions may start out as loan officers before being promoted. Alternatively, experienced loan officers may choose to open their own mortgage companies. In either case, continuing education and keeping up with the latest trends in the industry can help loan officers succeed in these roles.
