Top 10 HOW MUCH DOES A MORTGAGE LOAN ORIGINATOR MAKE? Answers

How Much Do Mortgage Loan Officers Make Per Loan?

Although compensation can vary greatly, lenders who provide leads pay less but connect the mortgage to prospective customers while mortgage loan officers that develop and maintain referral relationships and cultivate their own leads can make just under or above 1% of the loan amount. Take a $400,000 mortgage loan and this can translate to $4,000.

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Loan Officer Salary Can Vary Widely

Similar to a real estate agent’s salary, a l

  • Similar to a real estate agent’s salary, a loan officer’s take home pay can range dramatically
  • It all depends on how much you sell/close in a given year
  • If you’re a top loan officer, you can make a ton of money (even $1 million+ annually)
  • If you’re just an average or underperforming LO, expect comparably lower salaries

Wondering how much a loan officer makes an hour? Or what the average mortgage loan officer salary is?

Well, take note that most loan officers do not receive a base salary, only commission, so they are paid for performance. Sales performance.

The median income for a loan officer in the United States was $63,650 in 2016, according to the Bureau of Labor Statistics (BLS). That works out to an hourly wage of $30.60 per hour, which isn’t terrible by any stretch.

My assumption is that the number won’t change a great deal in 2017 or beyond, not that I would focus on the numbers from the Bureau of Labor Statistics anyway.

A better gauge might be the quarterly reports from a company called LBA Ware, which has a ton of data on loan officer compensation.

They said the average LO produced 51% more in volume during Q3 2020 ($2.6M per month) versus $1.7M per month in the same period in 2019.

And per-loan commission was 106 basis points in the third quarter of 2020, meaning the average LO made over $27,000 per month.

That works out to over $300,000 annually if they’re able to keep that up consistently.

But while the salary may seem super high, the average pay could well be skewed by the sheer number of loan officers who do very little, or are simply unsuccessful.

So you might have some big shots closing tons of jumbo loans while others languish and close next to nothing. These types of loans can pay a ton because of the large loan amounts.

Ultimately, loan officers have the ability to earn several hundred thousand dollars a year (or more) if they work hard and make the right connections.

If you break that down as an hourly wage, it could be very high if loan volume is solid and efficiency is high as well (aka not a lot of wasted hours chasing bad leads).

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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.

What Do Loan Originators Do?

MLOs will work with you through the steps of getting a mortgage, answering questions, collecting documents and verifying information. If you’re purchasing a home, they’ll also provide an estimate of your loan amount and interest rate based on a review of your income, credit report and assets. This mortgage preapproval can help you figure out your home buying budget and show real estate agents and sellers that you’re willing and able to purchase the home.

The MLO will continue to work with you through the application process, into underwriting and help ensure you’re ready for closing. Remember, an MLO can be a person or institution. While the loan officer is the person who works with you, the lender is the institution that initially funds the loan. A mortgage lender can be a bank or non-bank organization, like Rocket Mortgage®.

What Does a Loan Officer Do on a Daily Basis?

  • Selling is the main focus of a loan officer
  • That means bringing in new customers to apply for home loans
  • Whether it’s a refinance loan or a purchase loan
  • So you can earn a commission when it eventually funds

The broker or bank, or whomever employs the loan officer, may provide sales leads to the loan officer, or they may be completely on their own when it comes to acquiring business, making up their own sales and marketing to pitch potential borrowers.

If you work at a large bank or call center, you may be fortunate enough to just take incoming phone calls.

That means you’ll sit in a cubicle all day and field phone calls. You could also be required to follow-up with customers who expressed interest.

The good part is that you won’t have to find prospects on your own. That can be the hardest part.

If you work for a broker or a small company, you may still be provided with leads, though the quality could be less than desirable. That means you will have to network, make contacts, and market yourself and your services.

This entails trying to get individuals to finance home purchases or refinance their existing mortgages. That’s it. When that happens, you generally get paid.

Often, loan officers will implicitly or explicitly partner with a real estate agent or office so they can provide financing to their home buying prospects.

If you’ve ever purchased a home, you’ve likely had the preferred lender’s contact info thrown your way when it comes time to fill out a loan application.

A loan officer may get these leads and run no-obligation pre-approvals for those clients to win them over. Often, a real estate agent’s recommendation will end up providing financing since borrowers don’t tend to shop around.

In any case, your role as a loan officer is to sell and that’s pretty much it. If I had to sum up a loan officer jobs description, I’d simply say selling.

Sure, you’ll have to put your clients at ease throughout the loan process, and communicate with your staff, but the main objective is sales.

You won’t be doing the loan underwriting, nor will you approve loans that come in the door. That’s not part of your job description.

Loan officers at smaller shops and independent companies need to self-manage their time, and strive to call out up to 100 contacts a day. When demand for loans is low, it can be really tough.

Once a call is successful and a loan officer is able to retrieve a prospective customer’s information, they need to secure financing for their client.

If you work for a broker, you will also need to work with third-party banks and lenders (and Account Executives) to secure financing.

If you work directly for a bank or mortgage lender, you will need to familiarize yourself with the company’s entire product suite so you know what it is you’re selling.

In both situations, your main objective will be to originate loans and assist in processing them, at the same time making sure your borrower is attended to during the entire loan process.

5. Why Mortgage Loan Officers Commission is Unfair Lendova

Aug 17, 2020 — 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 (14)

Jul 8, 2020 — 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. (15)

Loan officers earn an average yearly salary of $68,710. Wages typically start from $35,430 and go up to $156,890. 25% above national average ○ Updated in 2018 (16)

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

How can I make sure a mortgage broker is legitimate?

The official Nationwide Multistate Licensing System, which maintains records for state agencies, has an online search tool, Consumer Access. It will tell you whether a mortgage broker is properly licensed and whether there have been any disciplinary actions against them.

Highest paying cities for Mortgage Loan Originators in United States

  1. Pensacola, FL $177,833 per year 8 salaries reported

  2. Jacksonville, FL $161,133 per year 28 salaries reported

  3. San Diego, CA $150,338 per year 24 salaries reported

  1. Phoenix, AZ $146,933 per year 40 salaries reported

  2. Atlanta, GA $115,405 per year 14 salaries reported

  3. Detroit, MI $114,755 per year 5 salaries reported

  1. Houston, TX $113,425 per year 39 salaries reported

  2. Scottsdale, AZ $104,412 per year 26 salaries reported

  3. Charlotte, NC $95,673 per year 10 salaries reported

Is this useful?

2. MOrtgage Loan Originator Salaries Glassdoor

How much does a MOrtgage Loan Originator make? The national average salary for MOrtgage Loan Originator is $49,919 per year in United States. Filter by How much does a MOrtgage Loan Originator in United States make?What is the highest salary for a MOrtgage Loan Originator in United States?(4)

How Much Does a Loan Officer Make? Loan Officers made a median salary of $63,270 in 2019. The best-paid 25 percent made $92,960 that year, while the lowest- (5)

The average salary for a Loan Originator is $49083. Visit PayScale to research loan originator salaries by city, experience, skill, employer and more.(6)

How do mortgage loan officers get paid?

Mortgage originators typically work solely on commission, getting paid only if the loan closes.

This can be a good thing for you as the consumer. This gives loan originators incentive to help an applicant boost his or her chances for approval.

Once a mortgage is approved and the loan funds, the loan originator will receive a percentage of the total loan amount.

The commission percentage that loan officers receive varies from one lending institution to the next. But on average, loan originators receive approximately 1% of the loan amount in commission.

For example, if you are purchasing a $250,000 home and putting 20% down, your loan amount would be $200,000. In this case, the loan officer that helped you get from application to closing might receive a 1% commission of $2,000.

How to choose a mortgage loan originator

Because a loan officer is such a key player in the home loan process, knowing how to choose one is essential to ensure you get the best mortgage with the best possible experience.

In addition to assisting you with your loan application, a good loan originator will have a diverse skillset.

With a proper balance of industry knowledge, communication skills, and integrity, a mortgage originator can make the complexities of a mortgage loan seem much easier — and the process a lot smoother.

The best way to know you’re working with a good loan officer is to do a little homework on him/her or their company.

Even with all the recent advances put in place by the Consumer Financial Protection Bureau (CFPB) to protect mortgage borrowers, it can still be possible to work with an unscrupulous lender.

That’s why loan officers with honesty and integrity and are a must.

The best way to know you’re working with a good loan officer is to do a little homework on him/her or their company.

Fortunately, thanks to technology, it’s easier than ever to do some quick due diligence.

A short amount of time spent online can tell you a lot. Check out social media and online review sites. You can learn a lot here, as it’s difficult for a loan officer and/or their company to avoid negative reviews.

Although technology makes it so you practically never even have to speak with a loan officer, you still should. If you can’t meet face-to-face with your loan officer, suggest a Zoom meeting.

Since real estate agents and attorneys work with loan officers every day, they folks can be a great referral source for finding a good loan officer.

By meeting your loan officer in person or online, you will most likely be able to get a sense of their work ethic and determine whether or not you will work compatibly together.

Good loan originators typically work hard to develop new business opportunities whenever possible.

They will actively work to develop a rapport with real estate agents and attorneys. Since these folks work with loan officers every day, they folks can be a great referral source for finding a good loan officer.

Be sure to check the company and the loan officer’s rating with the Better Business Bureau. Ask for references from previous clients, read online testimonials and most importantly, go with your gut.

Do mortgage brokers make more than loan officers?

While their incomes can vary widely by experience, the available data indicate that mortgage brokers tend to earn more on average than mortgage loan officers. For example, Payscale reports an average base salary of $49,369 for mortgage loan officers vs. $58,304 for brokers. Similarly, Glassdoor reports an average base salary of $43,241 for mortgage loan officers vs. $63,469 for brokers.

In many cases, mortgage brokers may have begun their careers as loan officers but later broke off on their own for the opportunity to earn a higher income or enjoy greater independence.

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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