Loan Officers work from home more in today's work environment than ever before. ... This will set you up for a fulfilling career as a remote loan officer. In today's day and age, working from home is becoming more acceptable. In 2021, 55% of companies offer work from home options.
After You Get Licensure. Once you receive your license, you can begin work as a home loan originator. Some MLOs work independently, but newbies often prefer to begin with an established business that has an existing client base, such as a bank, mortgage lending institution, or credit union.
MLOs may work directly for mortgage lenders, or they may be a mortgage broker offering options for the several different institutions. Every MLO must maintain state and/or federal licenses. Some licenses are maintained by the individual, while others are held by the lender themselves.
Being a Loan Officer Can Be Really Lucrative
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 that's the incentive, big money.
Job Outlook
Employment of loan officers is projected to grow 3 percent from 2019 to 2029, about as fast as the average for all occupations. Increased demand for loan officers is expected as both businesses and individuals seek credit to finance commercial investments and personal spending.
The average age of an employed Loan Officer is 44 years old. The most common ethnicity of Loan Officers is White (68.2%), followed by Hispanic or Latino (14.6%) and Black or African American (8.2%).
Pitching government loans, top mortgage officers can make millions a year, according to Jim Cameron, senior partner at Stratmor Group, a mortgage industry advisory firm. Brian Decker works at LoanDepot in Riverside County, Calif., where he sold more than $200 million worth of home loans last year.
Loan officers are one of the least happy careers in the United States. ... As it turns out, loan officers rate their career happiness 2.5 out of 5 stars which puts them in the bottom 5% of careers.
You deal with stress well. Like any job working with the public, the position of a loan officer can sometimes be stressful. If you can deal with that stress in a calm manner, your career as a loan officer is likely to be lucrative.
Becoming a loan officer in California is not as hard as it sounds when you follow the right steps and remain focused on your goals. You will soon embark on a rewarding journey that marks the start of an exciting career. Depending on your dedication, you can meet the prelicensing requirements within a few months.
In return for this service, the typical loan officer is paid 1% of the loan amount in commission. On a $500,000 loan, that's a commission of $5,000. Many banks pass this cost through to consumers by charging higher interest rates and origination fees.
A Diploma or GED
The good news is that you can get your mortgage loan originator license even if you don't have a college degree. While some states may prefer you have at least a bachelor's degree, it's not a requirement. However, you'll need proof of a high school diploma or GED.
The qualifications that you need to get a job as a loan officer with no experience include a bachelor's degree in a field like finance, business, or accounting. Employers expect a new loan officer to have a Mortgage Loan Originators license (MLO) from the Nationwide Mortgage Licensing System.
The time it takes to become a loan officer depends on what kind of schedule works best for you and how quickly you can work through the licensing requirements. Typically, it takes 45 days to complete the necessary requirements to become a licensed mortgage loan officer.
The median annual wage for loan officers in 2020 (the most recent figure, as of Sept. 20) is $63,960. Most loan officers work 40-hour work weeks for an annual salary, plus benefits.
Most loan officers can close anywhere from 18 to 25 loans in a year, with some doing as many as 35 to 40. According to U.S. News, which ranks loan officers as #14 on its list of Best Business Jobs, the average salary for a loan officer in 2015 was $63,430 with the upper 75th percentile making over $90,000.
Most loan officers work full time, and some work more than 40 hours per week. Except for consumer loan officers, who spend most of their time in offices, these workers may travel to visit clients. Loan officers typically need a bachelor's degree and on-the-job training. Mortgage loan officers must be licensed.
How difficult is the NMLS SAFE Act exam? Passing the exam is not easy… in fact, according to NMLS SAFE test passing rate, the first time pass rate is 54%, and only 46.7% for subsequent attempts. ... If an individual fails the test, they have to wait 30 days before being eligible to retake the exam.
As a loan officer, you will be responsible for many tasks throughout the homebuying process for your customers. For example: Prospecting for new leads through phone calls, emails, in-person contacts, networking events, contractor meetings, community events, and personal gatherings.
If a loan officer makes money "on the back," that means they're receiving a sort of commission from the bank for selling you the loan. ... In fact, the lending institution could be making a lot more money this way, as it stands to get a higher interest rate for what could be 30 years or more.
The average salary for a loan officer in California is around $60,420 per year.
Loan Officers made a median salary of $63,960 in 2020. The best-paid 25 percent made $93,490 that year, while the lowest-paid 25 percent made $45,540.