How Much Does a Mortgage Loan Officer Make?

A mortgage loan officer’s salary depends on many factors, including education, experience, location, and the size of the lending institution.

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Mortgage Loan Officer Salaries

Mortgage loan officers earn a median salary of $64,660 per year, or $31.10 per hour, as of May 2016, according to the U.S. Bureau of Labor Statistics. On the low end, mortgage loan officers earn a 25th percentile salary of $51,410, meaning 75 percent earn more than this amount. The 75th percentile salary is $79,840, meaning 25 percent earn more. In 2016, 132,700 people were employed in the U.S. as mortgage loan officers.

National Average Salary for Mortgage Loan Officers

As of Dec 31, 2020, the average annual pay for a Mortgage Loan Officer in the United States is $59,817 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.69 an hour. This is the equivalent of $1,145/week or $4,978/month.

Top 10% of Mortgage Loan Officers

The highest 10 percent of mortgage loan officers earned more than $208,000 in May 2019, while the lowest 10 percent earned less than $43,570, according to the U.S. Bureau of Labor Statistics. The median annual wage for this occupation was $ 106,710 in May 2019.

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

Bottom 10% of Mortgage Loan Officers

The bottom 10% of mortgage loan officers made an average salary of $28,120 in 2017, while the top 10% made an average of $160,880. The median salary for all mortgage loan officers was $63,650 in 2017.

Mortgage Loan Officer Job Outlook

Mortgage loan officers ranked No. 4 in Best Sales and Marketing Jobs. If you enjoy working with people and helping them achieve their homeownership dreams, a job as a mortgage loan officer could be a great fit for you. The average annual salary for a mortgage loan officer was $63,270 in 2017, but pay varies depending on experience, location, and the type of employer.

Employment of Mortgage Loan Officers is projected to grow

Employment of mortgage loan officers is projected to grow 11 percent from 2019 to 2029, much faster than the average for all occupations. Competition for jobs should continue to be strong because many people are interested in this occupation. Mortgage loan officers must have a bachelor’s degree and receive on-the-job training to become licensed.

Although a number of programs offer coursework related to mortgage loan origination, successful completion of these programs does not guarantee licensure. In addition, although some state legislatures have enacted laws that allow individuals with certain educational backgrounds and work experience to qualify for licensure, these requirements vary from state to state. Candidates with stong sales ability and excellent communication skills should have the best job prospects.

Mortgage Loan Officers will have competition for jobs

Mortgage loan officers held about LOAN OFFICER JOBS in 2018. The median annual wage for mortgage loan officers was $63,730 in May 2018.

Employment of mortgage loan officers is projected to grow 4 percent from 2018 to 2028, about as fast as the average for all occupations. The demand for loan officers will continue as people turn to them to arrange loans and advise them on the best type of financing.

Borrowers are increasingly turning to the internet and mobile devices to obtain information about mortgages and refinancing options, which may limit the need for face-to-face meetings with loan officers. In addition, some financial institutions are consolidating operations or downsizing, which could result in fewer positions for loan processors and underwriters, including mortgage loan officers.

Mortgage Loan Officer Training and Qualifications

Most mortgage loan officers need at least a bachelor’s degree in business, economics, or finance to get started. Mortgage loan officers must be licensed. Some states require mortgage loan officers to take continuing education courses as well. The Mortgage Bankers Association offers a professional designation, Certified Mortgage Banker (CMB), which requires at least three years of experience and passing an exam.

Education and Training for Mortgage Loan Officers

Mortgage loan officers typically need at least some formal education. Many have a bachelor’s degree, although the minimum requirement is usually a high school diploma. Some larger banks and mortgage companies may require loan officers to have a bachelor’s degree in business, economics, or finance. To get licensed, mortgage loan officers must complete 20 hours of pre-licensing education. They must also pass the National Mortgage Licensing System (NMLS) exam.

Licensing and Certification for Mortgage Loan Officers

Federal law requires loan officers to be licensed. There are two ways to achieve this: either by taking 20 hours of pre-licensing education from an approved provider and passing a state exam, or by completing an apprenticeship lasting at least two years under the supervision of a licensed loan officer.

Individuals who choose the apprenticeship route must complete four hours of continuing education each year to maintain their license.

Loan officers must also be registered with the Nationwide Mortgage Licensing System and Registry (NMLS). To register, they must complete a background check, pay a fee and pass an exam. Registration is valid for four years, after which another background check and fee are required for renewal.

Many states have additional requirements for mortgage loan officers. For example, California requires loan officers to take eight hours of continuing education every year in addition to the four-hour NMLS requirement.

Loan officers may also pursue voluntary certification from professional organizations such as the Mortgage Bankers Association (MBA). The MBA offers the Certified Mortgage Banker (CMB) designation, which requires completion of a training program, experience in the industry and passage of an exam.

What Mortgage Loan Officers Do

Mortgage loan officers typically work for banks, credit unions, and mortgage companies. They help individuals and businesses secure funding for real estate purchases. A mortgage loan officer’s job is to evaluate loan applications and make recommendations to the lender. The loan officer also works with the borrower to find the best loan option and terms.

Job Duties of Mortgage Loan Officers

Mortgage loan officers typically work for banks or mortgage companies and must be licensed. They spend much of their time taking loan applications, meeting with applicants to gather financial and personal information, and advising applicants on the best type of loan for their needs.

Mortgage loan officers must have excellent math skills to calculate monthly payments and interest rates. They also must be well-versed in the different types of loans available, such as fixed-rate or adjustable-rate mortgages. Loan officers usually are expected to meet certain quotas in terms of the number or dollar amount of loans they originate, so they may work long hours to reach their goals.

Work Schedule of Mortgage Loan Officers

Mortgage loan officers typically work during business hours, but some may work evenings or weekends to accommodate potential borrowers’ schedules. Some travel may be necessary to meet with clients, but most of the work can be done in an office.

How to Become a Mortgage Loan Officer

Mortgage loan officers typically work for banks, credit unions, or mortgage companies, and their primary responsibility is to originate and process residential mortgage loans. In order to become a mortgage loan officer, you will need at least a high school diploma, although some employers may prefer candidates with an associate or bachelor’s degree.

Steps to Becoming a Mortgage Loan Officer

The steps to becoming a mortgage loan officer are relatively straightforward. After completing a few basic requirements, you will complete a training program, obtain a license, and then be ready to begin your career in this exciting and growing industry.

1. Check Basic Mortgage Loan Officer Requirements
2. Complete Mortgage Loan Officer Training
3. Obtain a Mortgage Loan Officer License
4. Begin Your Career as a Mortgage Loan Officer

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