What Does A Loan Officer Make

Loan Officer Salaries

In 2020, the average yearly salary for a loan officer is $63,960. Those in the bottom 10% of wage earners in this field made an average yearly salary of less than $32,820, while those in the top 10% made an average salary of more than $132,290.

Pay is determined by the employer and the quality of the work. While some loan officers receive an hourly wage or a fixed salary, others are compensated with commission in addition to their base pay. Commissions are determined by how many loans these experts create or how well those loans are repaid.

Loan Officer Benefits

Standard benefits like health, vacation, and access to retirement accounts are provided to the majority of full-time loan officers. Since most loan officers are employed by banks or other private businesses, their employers’ benefits differ.

Loan Officer Duties and Requirements

Loan officers interact with a wide range of people in order to make lending easier for banking customers. Loan products that may come into contact with a loan officer include credit lines, mortgage loans, and personal loans. Their extensive knowledge of banking industry protocols and their ability to work with a wide range of lending products instills greater confidence in borrowers when it comes to closing a loan deal.

For borrowers looking to borrow money from financial institutions, loan officers are a direct point of contact. Many borrowers would rather deal directly with a loan officer to make sure all of their needs are satisfied. Even though conventional bank lending processes can take longer, one-on-one communication often boosts borrowers’ confidence in carrying out a loan arrangement.

For this financial career, a bachelor’s degree is preferred, and the majority of applicants have a degree in business, finance, accounting, or a similar discipline. People with prior experience in related business fields may be able to enter this field without a bachelor’s degree in certain circumstances.

While many employers provide extensive on-the-job training, mortgage brokers must complete coursework and pass an exam in order to obtain their license.

Loan Officer Job Prospects

Jobs are frequently available because loan officers are needed in a wide range of industries, including banking and real estate. However, according to the U. S. The Bureau of Labor Statistics projects that, from 2020 to 2030, the employment market for loan officers will remain stable. The BLS states that over the next ten years, an average of 25,000 positions for loan officers are expected to become available annually.

These positions will probably arise because a large number of loan officers may reach retirement age or depart the workforce for other causes.

Salaries of Similar Professions

Loan officers and other related professions include underwriters, mortgage loan originators, and loan processors.

Loan Processors

The annual base pay for a loan processor is $53,934 plus benefits. Similar to loan officers, loan processors are employed by banks, mortgage lenders, and other loan-related companies.

Mortgage Loan Orginators

The pay for this position is marginally more than that of a loan processor. The average salary nationwide is around $75,000 a year. An originator of mortgage loans in the real estate sector may receive a commission based on a number of variables, such as the originator’s employer.

Insurance Underwriters

As of May 2020, the BLS reports that the average pay for an underwriter is $71,790. Experienced underwriters in the insurance industry may make as much as $129,550.

What Is the Salary of a Mortgage Loan Officer?

An average mortgage loan officer makes roughly $73,756 per year.

What Is the Salary of an Agricultural Loan Officer?

An agricultural loan officer typically makes roughly $68,633 per year.

What Is the Average Salary for a Loan Officer Assistant?

An assistant for a loan officer doesn’t have an average pay because it depends too much on the company where they work, whether they are paid hourly or annually, and their level of experience. The BLS reports that the median salary for financial clerks, who might assist loan officers in similar capacities, is $41,520.

What Are the Highest Paying Cities in the U.S. for Loan Officers?

Based on information from ZipRecruiter, the top three cities in the U.S. S. San Jose, CA; Oakland, CA; and Tanaina, AK are the locations for loan officers.

The Bottom Line

Loan officers work in various fields and areas. While some loan officers work as underwriters in banking or insurance, others are employed in real estate. While mortgage loan officers may handle both residential and commercial mortgage loans depending on their area of expertise, commercial loan officers are specialists in business loans.

The majority of loan officers hold a bachelor’s degree in business or finance. Certain loan officers will require particular certifications or designations; for example, a mortgage broker needs to obtain a license. Article Sources: Investopedia mandates that authors cite original sources to bolster their claims. These consist of government data, original reporting, white papers, and conversations with professionals in the field. When appropriate, we also cite original research from other respectable publishers. You can read more about the guidelines we adhere to when creating impartial, truthful content in our

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FAQ

Is a loan officer a good side hustle?

If you are willing to put in the time for training and licensing, have the requisite skills, and there is a need for loan officers in your area, becoming a loan officer could be a lucrative side gig.

How much do mortgage loan officers make in NY?

In the New York City, NY area, the average annual salary for a Mortgage Loan Officer is $77,887, and their estimated total compensation is $149,586. The midpoint of the ranges from our unique Total Pay Estimate model, which is based on salaries gathered from our users, is represented by these numbers, which are called the median.

Read More :

https://www.indeed.com/career/loan-officer/salaries
https://money.usnews.com/careers/best-jobs/loan-officer/salary