How Do Loan Officers Get Paid
- Post category:Loans
Whether you’re taking a loan yourself or maybe considering this as a profession, the question of a loan officer’s income may be on your mind. After all, if you’re taking a loan or a mortgage, how your loan officer gets paid may affect their recommendations. And if you’re just out there scouring the web for career opportunities, then how much and how exactly this line of work can make you money is certainly an important question. Read on as we bring you solid referenced information on this very topic.
Consumers have a healthy skepticism of free services. You may not be paying your buying realtor, insurance agent, financial planner, or loan officer out of pocket but you know they are not working for you out of the goodness of their heart. Someone must be paying them, somehow. Who is paying them? Is that their real customer? Will it influence the advice they give you or the products they steer you to?
The loyalties of loan officers are particularly mysterious. They may work for a bank or brokerage, but may also be the house lender for a realty office. They may source loans from a variety of different institutions. What master does the loan officer really serve?
Understanding how your loan officer gets paid is critical to getting the best deal on a new loan.
What Are Qualities Of A Good Loan Officer
The Qualities of a Good Loan Officer
- Bring Expertise to Your Loan Process. Among a loan officer’s skills is expertise in the industry. …
- Tailor Loans to Your Personal and Financial Situation. …
- Possess Superior Customer Service Skills. …
- Provide Suggestions for Improving Qualifications. …
- Communicates Well With Involved Parties.
Loan Officer/loan Processor Job Description
Between the years 2018 and 2028, Loan Officer/Loan Processor jobs are expected to undergo a growth rate described as “faster than average” at 8%, according to the Bureau of Labor Statistics. So if the thought “should I become a Loan Officer/Loan Processor?” Has crossed your mind, maybe you should take the growth rate into account. In addition, the number of Loan Officer/Loan Processor opportunities that are projected to become available by 2028 is 24,300.
A Loan Officer/Loan Processor annual salary averages $45,158, which breaks down to $21.71 an hour. However, Loan Officers/Loan Processor can earn anywhere from upwards of $28,000 to $71,000 a year. This means that the top-earning Loan Officers/Loan Processor make $43,000 more than the lowest-earning ones.
As is the case with most jobs, it takes work to become a Loan Officer/Loan Processor. Sometimes people change their minds about their career after working in the profession. That’s why we looked into some other professions that might help you find your next opportunity. These professions include a Mortgage Consultant, Mortgage Loan Specialist, Loan Analyst, and Loan Coordinator.
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How Do Mortgage Loan Officers Get Paid
A loan officers wage varies depending on their employer and years of experience. Mortgage loan originators earn an hourly wage or a flat salary. Some mortgage loan originators might earn commission on top of their regular payments.
Most companies offer full-time loan officers standard business benefits such as vacation time, sick days, insurance, and so on.
Being A Loan Officer Can Be Really Lucrative
- There are few jobs other than doctors, lawyers, and sports stars
- That pay several hundred thousand dollars a year in salary
- Top loan officers have the potential to make that kind of money too
- And even average ones can make six-figures annually during good years
If a mortgage loan officer gets just one of those deals to go through, it often equates to a huge payday, sometimes as much as a few months salary working a minimum wage job or other lower paying jobs.
So thats the incentive, big money. But there are a number of questions you need to ask yourself before setting out in the mortgage industry as a loan officer.
First and foremost, it is not an easy job. Sure, a mortgage broker or bank may tell you that its simple. And yes, you may not have to work very hard in the traditional sense, or take part in any back-breaking work.
But factor in the stress, the near misses, lost deals, the shots to your ego, and the wheel-spinning and it isnt as effortless as they may make it out to be.
You will see deals fall through and you will waste a lot of time. You will have mental breakdowns as loans slip through your fingers, and brokers and real estate agents scream at you as deadlines close in.
You will undoubtedly make mistakes, which will require a phone call to the borrower to let them know you cant do the deal. It will be embarrassing and unpleasant.
All that aside, lets look at a loan officers typical day, not that any day is ever typical
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Mortgage Loan Officer Isalary
How much does a Mortgage Loan Officer I make in the United States? The average Mortgage Loan Officer I salary in the United States is $45,358 as of January 27, 2022, but the range typically falls between $37,080 and $55,176. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.
|10th Percentile Mortgage Loan Officer I Salary||$29,543|
|25th Percentile Mortgage Loan Officer I Salary||$37,080|
|50th Percentile Mortgage Loan Officer I Salary||$45,358|
|75th Percentile Mortgage Loan Officer I Salary||$55,176|
|90th Percentile Mortgage Loan Officer I Salary||$64,115|
How To Be A Top Producing Loan Officer
- Its simple really and theres no secret formula
- Work hard and close as many loans as possible
- You can accomplish this by solid networking and putting in the time
- Theres nothing magical about it, just strong work ethic
While there might be gimmicks and top 10 lists and classes that teach you how to sell, it really comes down to hustling. Honestly.
If youre committed to the business, you can be really successful and earn a ton of money. When I worked for a wholesale lender, there were Account Executives who sat around and complained, and others who just put their heads down and dialed the phone.
That latter group made a lot of money, while the complainers made average salaries and eventually quit. Ultimately, its about work ethic and drive.
All the other stuff, like education and the art of selling, will come with experience. You cant teach someone how to sell in a class, nor can you teach them everything about mortgages in a day or a week.
It takes time and real-life experience to master those things. But without motivation and hard work, it will mean very little.
So if you want to be successful as a loan officer, you need to work hard and network. Dont be shy, make calls, visit real estate offices and link up with real estate brokers, and eventually it will get easier and easier.
Sure, you might have some nervous calls and meetings early on, but once you gain confidence, itll become second nature and pay dividends.
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Pass The Safe Mlo Test
To receive your mortgage loan officer licensure, you must also pass the SAFE MLO test with a minimum score of 75%. This exam measures your knowledge of both federal and state mortgage lending laws. You may retake the test, although there is a 30-day waiting period for retakes. If you take the SAFE MLO test three times, you must wait 180 days to retake it.
The SAFE Act and the NMLS require mortgage loan officers to:
Register with the NMLS
Provide authorization for a credit report
Provide fingerprints for a criminal background check
Verify the accuracy and completeness of the information they provide
Disclose any charges from financial regulatory agencies
Provide 10 years’ worth of financial services employment history
Present several types of identification information
Getting The Appropriate Degree
Degrees in accounting, finance, economics, or business administration are just a few examples of relevant studies and coursework needed to navigate the current financial world. Loan officers should consider completing a degree program like this to help develop necessary industry skills, such as financial analysis, accounting, sales, project management, and data analytics.
Whats more, those who complete an undergraduate degree at a top university like Northeastern will have countless opportunities for hands-on learning throughout their program. Opportunities like these allow students to not only develop the relevant skills needed to achieve success, but also help to create a valuable network of industry-leading professionals.
Did You Know: Individuals with a college degree earn an average 67 percent more money annually than those with only a high school diploma.
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You Asked: How To Get A Job At Quicken Loans
The average salary for Quicken Loans is $128k per year, which includes an average base salary of $111k and an average bonus of $17k.
Also, how much do Rocket Mortgage employees make? Average Rocket Companies Loan Officer yearly pay in California is approximately $99,047, which is 43% below the national average.
You asked, is Quicken Loans a good place to work? On average, employees at Quicken Loans give their company a 4.2 rating out of 5.0 which is 7% higher than the average rating for all companies on CareerBliss. The happiest Quicken Loans employees are Senior Mortgage Bankers submitting an average rating of 4.4 and Mortgage Bankers with a rating of 4.3.
Best answer for this question, why is Quicken Loans a good company to work for? Quicken Loans is a team environment. Its so much more than just a great place to work. Quicken Loans truly believes that a culture that empowers team members will lead to empowered clients. Clients love working with Quicken Loans because the team members love working with them.
Likewise, does Quicken Loans drug test new hires? Does Quicken Loan do a drug test before hiring ? Nope.
Loan Officer Duties And Requirements
Loan officers communicate with numerous individuals to facilitate the lending process for banking clients. Loan products that may involve a loan officer can include personal loans, mortgage loans, and lines of credit. They work with a wide variety of lending products and have a comprehensive awareness of them and banking industry protocols, giving borrowers greater confidence in executing a lending deal.
Loan officers are a direct source of contact for borrowers seeking loans from financial institutions. Many borrowers prefer working with a loan officer directly to ensure that all of their needs are met. While traditional bank lending procedures can be more time-intensive, personal interaction often gives borrowers greater confidence in executing a lending deal.
This financial career requires a bachelor’s degree, and most applicants earn a degree in business, finance, accounting, or a related field. In some cases, people who have experience in a related business career can enter this field without a bachelor’s degree.
Many employers offer a great deal of on-the-job training, but mortgage lenders must take classes and pass a test to get their mortgage originator’s license.
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Sales Experienceearn +1060% More
The jobs requiring this skill have decrease by 15.46% since 2018. Loan Officers with this skill earn +10.60% more than the average base salary, which is $179,928 per year.
|Number of job openings on Indeed requiring this skill||Change from previous year|
More critical skills and qualifications that pay well
What Is A Mortgage Broker
A mortgage broker serves as an intermediary between borrowers and lenders they do not make loans themselves. If a loan is approved, the mortgage broker collects an origination fee from the lender as compensation.
For borrowers, the advantage of using a broker is that they can shop different banks for the lowest rates, while loan officers can deal only in the rates offered by their institution, although they may have a little negotiating room.
Mortgage brokers may not always come up with the best possible offer, so it’s important to do your own legwork.
On the other hand, the advantage of using a loan officer is that you don’t have to pay the broker’s feewhich you can bet is eventually going to come out of your pocket, one way or another.
If a broker can find a lower rate and still offer the most advantageous loaneven after accounting for their feesthen they may be your best choice.
However, don’t automatically assume that brokers will give you the best rates they can. They may be cozy with certain lenders or swayed by which lender offers them a larger commission. So, even if you plan to use a broker, there’s no substitute for shopping around, comparing loans, and knowing the difference between a really good rate and a so-so one.
What Is It Like To Work At Rocket Mortgage
94% of employees at Rocket Companies say it is a great place to work compared to 59% of employees at a typical U.S.-based company. I feel good about the ways we contribute to the community. Our facilities contribute to a good working environment. Management is honest and ethical in its business practices.
How Much Do Loan Officers Make
If youve got an interest in the world of finance and/or banking with customer service skills to match, becoming a loan officer may be a viable option for your next career move. This role is highly focused on sales goals as well as consultative relationships with business or individual customers, so if youve got a highly-attuned eye for detail, a desire to help others fulfill their dreams and want to make a great salary doing so, keep reading. In this article, well discuss the job responsibilities of a loan officer as well as salary and commissions, along with a list of steps to follow to become a loan officer.
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Educate Customers About Financial Products
Though some borrowers will know right away the type of loan that they are looking for and the terms that they require, many others will need to be educated about their options. It is the loan officers responsibility to provide that insight to the borrower, and in order to do that successfully, loan officers must be comfortable with the several types of loans available.
While each loan officer and company may differ on their specialty, the most common types of loans include:
Each of these four types of loans is unique in the stipulations and details for the lender and borrower, which is why loan officers must maintain a deep understanding of the laws and regulations impacting their industry as well. With a greater understanding of industry laws, loan officers can guide borrowers on the right path for their financial needs in a collaborative, transparent way.
The Right Mortgage Loan Originator For You
Whether youre buying a new home or refinancing your existing home, the home loan process can seem like an overwhelming experience.
The right loan originator can reduce or eliminate that headache. So, make sure youve found the right fit for you and your needs.
As with other professions, whether its a doctor, a mechanic, or a plumber, you may need to do a little research.
But the time youll spend searching for the right loan originator can turn a complex mortgage experience into one that feels seamless and pleasant.
Step by Step Guide
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What Is The Average Salary For A Loan Officer Assistant
There isn’t an average salary for a loan officer assistant, as it depends on too many factors from the company where the assistant is employed, if they work hourly or for an annual salary, and experience. According to the BLS, financial clerks who may do similar work as an assistant to a loan officer earn a median salary of $41,520.
Loan Officer Job Description
- Sell, sell, sell! Always be closing!
- Thats pretty much the job description of a loan officer
- But you also have to be well-versed in customer satisfaction, mortgage lingo, and product knowledge
- And stay up-to-date on the many rules/regulations involved
First off, a loan officer may be referred to as a mortgage planner, lending officer, MLO, mortgage specialist, dedicated lending associate, loan consultant, loan agent, mortgage professional, senior of any of these, or junior of any of these.
There are lots of creative names for the position depending on the company in question, but the job description will likely be the same regardless.
A loan officer may come into work in the late morning around 9 or 10am and work until 6-9pm.
The time may be structured to work around when companies are allowed to solicit consumers in their homes. The traditional peak hours for sales calls take place in the early evening, between 6pm and 9pm.
Of course, you could also be a go-getter who arrives at 6am and only works until the early afternoon. There is certainly flexibility when it comes to working hours, though it does depend on the type of company you work for.
If you work for a large company, such as a depository bank, credit unions, or a mortgage banker, chances are youll work the typical 9-5 schedule since bank branches are only open during those hours.
If you work for a smaller mortgage company, or a broker, you might be able to set your own hours and do whatever you please.
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