Are you considering a job as a Mortgage Loan Officer (MLO)? The first thing you should know is that you will not be crunching numbers or licking envelopes. Every day, you’ll also get to work with new people, find new mortgage leads, and make crucial financial decisions. In this article, we walk you through the salary plus commission structure for a mortgage loan officer, even as a rocket officer or not. Let’s get started.
Who is a Mortgage Loan Officer?
A Mortgage Loan Originator can be either an individual or a business. In the latter situation, this is typically a bank or another form of financial lending organization. Borrowers are guided through the loan application procedure by the loan officer. An MLO, in particular, assists borrowers in obtaining the necessary finance to purchase a home.
Given the importance of this decision in the borrower’s life, an MLO does far more than simply represent the institution in marketing loan products. They take on the role of confidante and counselor in whose guidance the borrower has complete faith.
What Does a Mortgage Loan Officer Do?
A Mortgage Loan Officer is essential in guiding clients through the process of getting a mortgage for the purpose of purchasing or refinancing a home. As financial specialists, they have in-depth knowledge of numerous loan products and lending criteria, allowing them to advise consumers on the best mortgage solutions. Their duties include acquiring the relevant data from applicants, analyzing creditworthiness, and ensuring that loan applications match the approval criteria. Mortgage Loan Officers help streamline the mortgage process by coordinating between borrowers and underwriters, ensuring a seamless and efficient transaction for all parties involved.
Mortgage Loan Officer Salary Structure & Benefits
A mortgage loan officer who works for a larger institution, such as a bank, is more likely to be paid a salary, plus commission, and benefits. They have a steady flow of client walk-ins and prospect phone calls. A small state-licensed mortgage broker, on the other hand, may have to rely completely on commissions for income.
Your payment may also be based on a monthly quota, i.e. if you close “X” amount of loans each month, you’ll be paid a large commission. If you do not meet that target, you may only receive a fixed minimum cash amount for each loan.
Let’s speak about numbers! We’ll divide this down into pay plus commission salary, as well as the most frequent benefits received by a mortgage loan officer, whether as a rocket officer or not.
Mortgage Loan Officer Base Salary (Nationwide Average)
We gathered a few basic pay figures from a variety of sources. These differ greatly depending on your location, experience, skill set, education, and certifications. As of April 2023, the average income for a loan officer in the United States is expected to be between $107,000 and $174, 000. Indeed, it depicts a different picture. Indeed discovered that the yearly basic wage for a mortgage loan officer is $234,277 based on aggregate salaries from over 10,000 candidates.
In terms of experience, this would be as follows:
- 1 to 5 years – $199,395
- 6 to 9 years – $312,515
- Over 10 years – $343,253
ZipRecruiter responds with a variety of numbers. According to their estimations, the typical annual salary is $74,838 or $36 per hour. Career Explorer provides some intriguing insights into the delineation by seniority.
- Senior Loan Officers – $111,888 per year
- Intermediate Loan Officers – $57,580 per year
- Junior Loan Officers – $29,632 per year
Mortgage Loan Officer Salary Plus Commission (Nationwide Average)
A mortgage loan officer plus commission structure salary varies greatly from institution to institution, and it is based on the fee split, compensation, and other incentives and bonuses. Based on information gathered from former and present employees, this amounts to around $27,600 each year.
Mortgage Loan Officer Benefits (Nationwide Average)
Indeed, has highlighted the following as the most common benefits of an MLO:
- 401(k)
- 401(k) matching
- Vision insurance
- Dental Insurance
- Health insurance
- Life insurance
- Work from home
As previously indicated, it makes no sense to rely on these figures because they are simply intended to give you an indication of the compensation. Your real income will be entirely determined by the state in which you work, the company you work for, and your individual experience and skill set.
Stay tuned. We’ll go through the mortgage loan officer wage structure per state down below.
Average Loan Officer Salary By State
Now that you’ve decided on this rewarding career, let’s speak about how much you can earn. In this section, we’ll examine at mortgage loan officer salaries in each state, territory, and district, broken down by junior, intermediate, and senior levels. These figures were obtained from Career Explorer.
Senior Mortgage Loan Originators have over ten years of experience, mid-level MLOs have anywhere from six to nine years, and junior-level loan officers have often worked for one to five years. Let us have a look at some of these states.
#1. Alabama
Loan officer salaries in Alabama were found to be 8% lower than the national average.
Senior Mortgage Loan Officer salary
- Annual: $92,867
- Hourly: $44.65
Intermediate Mortgage Loan Officer salary
- Annual: $53,488
- Hourly: $25.72
Junior Mortgage Loan Officer salary
- Annual: $30,807
- Hourly: $14.81
#2. Alaska
Loan officer salaries in Alaska were found to be 14% lower than the national average.
Senior Mortgage Loan Officer salary
- Annual: $115,706
- Hourly: $55.63
Intermediate Mortgage Loan Officer salary
- Annual: $56,980
- Hourly: $27.39
Junior Mortgage Loan Officer salary
- Annual: $28,060
- Hourly: $13.49
#3. Arizona
Loan officer salaries in Arizona were found to be 3% higher than the national average.
Senior Mortgage Loan Officer salary
- Annual: $122,349
- Hourly: $58.82
Intermediate Mortgage Loan Officer salary
- Annual: $52,696
- Hourly: $25.33
Junior Mortgage Loan Officer salary
- Annual: $22,696
- Hourly: $10.91
#4. Arkansas
Loan officer salaries in Arkansas were found to be 7% higher than the national average.
Senior Mortgage Loan Officer salary
- Annual: $105,964
- Hourly: $50.94
Intermediate Mortgage Loan Officer salary
- Annual: $55,514
- Hourly: $26.69
Junior Mortgage Loan Officer salary
- Annual: $29,083
- Hourly: $13.98
#5. California
Loan officer salaries in California were found to be 0% lower than the national average.
Senior Mortgage Loan Officer salary
- Annual: $137,657
- Hourly: $66.18
Intermediate Mortgage Loan Officer salary
- Annual: $60,420
- Hourly: $29.05
Junior Mortgage Loan Officer salary
- Annual: $26,519
- Hourly: $12.75
#6. Colorado
Loan officer salaries in Colorado were found to be 1% lower than the national average.
Senior Mortgage Loan Officer salary
- Annual: $119,930
- Hourly: $57.66
Intermediate Mortgage Loan Officer salary
- Annual: $61,010
- Hourly: $29.33
Junior Mortgage Loan Officer salary
- Annual: $27,320
- Hourly: $13.13
#7. Connecticut
Loan officer salaries in Connecticut were found to be 39% higher than the national average.
Senior Mortgage Loan Officer salary
Annual: $196,494
Hourly: $94.47
Intermediate Mortgage Loan Officer salary
Annual: $88,768
Hourly: $42.68
Junior Mortgage Loan Officer salary
Annual: $40,102
Hourly: $19.28
#8. Delaware
Loan officer salaries in Delaware were found to be 3% lower than the national average.
Senior MLO salary
- Annual: $121,030
- Hourly: $58.19
Intermediate MLO salary
- Annual: $60,140
- Hourly: $28.92
Junior MLO salary
- Annual: $35,840
- Hourly: $17.23
#9. Florida
Loan officer salaries in Florida were found to be 22% higher than the national average.
Senior MLO salary
- Annual: $134,700
- Hourly: $64.76
Intermediate MLO salary
- Annual: $67,760
- Hourly: $32.58
Junior MLO salary
- Annual: $35,580
- Hourly: $17.10
#10. Georgia
Loan officer salaries in Georgia were found to be 14% higher than the national average.
Senior MLO salary
- Annual: $131,410
- Hourly: $63.18
Intermediate MLO salary
- Annual: $54,690
- Hourly: $26.29
Junior MLO salary
- Annual: $28,970
- Hourly: $13.93
What are the Career Prospects of a Mortgage Loan Officer?
With the ever-increasing need for real estate financing, the career possibilities for a Mortgage Loan Officer remain bright. As a Mortgage Loan Officer, you play a critical role in assisting individuals and families in achieving their homeownership goals. You can expect a competitive wage with attractive commissions, numerous prospects for advancement, and the opportunity to work in a variety of settings such as banks, credit unions, mortgage brokerages, and even real estate firms.
Furthermore, with technological improvements and the rise of digital mortgage platforms, Mortgage Loan Officers have the possibility to reach a larger customer base while also streamlining their overall procedures. You can expect a prosperous career as a Mortgage Loan Officer if you have devotion, good interpersonal skills, and a continual focus on professional development.
What are the Top Skills Needed to be a Successful Mortgage Loan Officer?
To help customers achieve their dream houses, a successful Mortgage Loan Officer must have a varied set of abilities that allow for seamless navigation of the evolving financial world. Strong communication and interpersonal skills are essential for these individuals, as they must effectively communicate with clients, real estate agents, and other stakeholders.
They should also have a thorough awareness of mortgage products and lending rules in order to provide appropriate solutions and advice to borrowers. Analytical and problem-solving skills are essential for assessing complex financial conditions and adapting mortgage solutions to individual needs.
Furthermore, organizational skills, time management, and attention to detail assist loan officers in managing several clients while guaranteeing accuracy and deadline adherence. Finally, as the mortgage industry evolves, maintaining current on technical advances and being adept with digital tools and software will offer you an advantage in providing clients with convenient, efficient, and competitive services.
How to Boost Your Salary As a Mortgage Loan Originator
There is no enigmatic recipe for being a high-performing, well-paid loan officer. All it needs is commitment and patience. Concentrate on these two key points, and you should be well on your way to increasing your compensation as a Mortgage Loan Officer:
#1. Network, network, network
As loan officers, we recognize that salesmanship is essential. Making genuine connections with those around you is equally vital. Don’t be afraid to call or contact realtors in order to expand your network of colleagues and clients. You’ll face a few roadblocks at first, but it’ll start paying off sooner than you think!
#2. Build a good book of business
The hustle is everything. Work as hard as you possibly can to close as many loans as possible. Take a genuine interest in learning about each borrower’s profile and demands; that way, you’ll be better equipped to handle a wide range of accounts with ease and rarely find yourself out of your depth.
Your book will also be very useful in obtaining greater career opportunities in the future.
What Is the Highest Salary for a Mortgage Loan Officer?
The annual compensation for a Mortgage Loan Officer in the United States is $220,826.
What Type of Loan Officer Makes the Most Money?
Mortgage Loan Officer Jobs with High Pay include:
- Commercial Real Estate Lender.
- Private Mortgage Banker Safe.
- Loan Originator.
- Mortgage Consultant.
- Mortgage Sales Manager.
- Mortgage Advisor.
- Licensed Mortgage Loan Officer.
- Mortgage Loan Officer Originator.
Can Loan Officers Make Good Money?
Yes. The average annual salary for a Mortgage Loan Originator in Florida is $76,776 as of May 9, 2023. In case you need a quick salary calculator, that works out to about $36.91 per hour. This equates to $1,476 each week or $6,398 per month.
How Stressful Is Being a Mortgage Loan Officer?
Yes, working as a loan processor may be stressful. As they strive to negotiate the numerous documents and paperwork required for the mortgage underwriter to authorize the loan, this can make the task unpleasant. This gets more difficult when a paperwork error, in either case, can have serious implications.
Do Loan Officers Do a Lot of Math?
To be an excellent loan officer, you don’t have to be a math genius. However, there is clearly a significant portion of the job that includes numbers. It is vital to be conversant with numbers in order to avoid becoming lost in the complexities of the loan process.
Why Do Loan Officers Make So Much?
Loan origination fees, closing charges, and servicing and selling loans are how mortgage loan officers make their money. A Mortgage Loan Officer’s remuneration is often dependent on commission, with compensation varied by office and state.
Is a Loan Officer a Good Side Hustle?
A loan officer’s salary might easily reach six figures. Even if you only want to do it as a side hustle, you can make a solid livelihood. It actually depends on the company you work for, your level of expertise, and the status of the economy.
What Percent of Loan Officers Fail?
As an aspiring Mortgage Loan Officer (MLO), you must complete certain processes to get your license, including taking and passing the SAFE MLO Test. Failing this test is a common occurrence for new MLOs, with only 57% passing on their first attempt.
Conclusion
There are numerous opportunities to earn a good living as a mortgage loan officer and have a long and prosperous career. It’s critical to stay the course because you’ll face numerous challenges along the route. Because you’ll be a part of important life decisions and private family moments, the financial and emotional payoff is well worth it. Our final piece of advice is to never lose sight of your passion.
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