Mortgage Loan Officer Salary - What Is It?
Getting a mortgage loan officer job has always been considered to be very lucrative (the pay is really good), in comparison to the quantum of work that is involved in it. But how lucrative is it actually? This report explains in brief what a mortgage loan officer job entails and how much the salary is.
There are actually two types of mortgage loan officer jobs, and the remuneration depends on those posts. The following are two types:-
Credit analyst loan officers - People in a mortgage loan officer career are those who scrutinize the credit reports of the applicants and make the decision of whether or not to extend loans on that basis. They have to calculate the risk factor in providing the loans, and on that basis determine whether the provision of the loan to the applicant will be a good investment or not. All their studies have to be recorded in the form of reports.
Loan officers - These are the people who will evaluate the reports of the credit analysts and will authorize the issue of the mortgage if everything is in order. They are responsible for issuing all the kinds of loans. They will also advise the mortgagors on the modes of payment
Apart from this, the loan officers themselves are categorized into various heads according to the transactions they undertake. They include all the officers related with issuing loans, the people who service the loans, the collection agents and even the loan underwriters.
As such, there is a huge range in the salaries that are provided to mortgage loan officers. The mortgage loan officer salary will also depend in good measure on the region in which the credit providing institution is situated. The whole business of a mortgage processor depends on the banking in the area and that is the reason why the peripheral financial services become so significant. The following are the current trends observed in mortgage loan officer salary:-
The average median salary of mortgage loan officers in the US taking 2002 statistics into account ranges from $25000 to $89000, which is rounded off to the nearest thousand. This range reflects the median salary of the lowest ten percent of officers and the highest ten percent. The middle eighty percent officers have an average median score of about $45000.
Current statistics (2007) show that mortgage loan officers make the highest incomes annually, close to $150,000, rounded off to the nearest thousand, and are closely followed by the residential mortgage loan officers, who are at $128,000. Posts like junior loan officer, subprime loan officer, loan originator and inside sales loan officer are the lowest, at about $22,000 to $25,000 annually.
Region-wise, the top six cities in the US as per mortgage loan officer salaries are New York, Minneapolis, Chicago, Dallas, Los Angeles and Atlanta. Also remember to read and understand carefully the mortgage loan officer job description in order to avoid silly mistakes. Apart from these general trends, it is to be noted that there could be fluctuations when the salary is commission-based. Some institutions will provide commissions to their mortgage loan officers on the average number of loans they close in a particular period of time. The closed loans are their product on which they get their base salary. Such commission mortgage loan officers will earn a base salary plus the commissions due to them on the number of loans they can close. In addition, commission mortgage loan officers are also provided with some special privileges, such as bonuses on a particular number of loans at fixed periods of the year, and free checking facilities on their own personal loan requirements. However, the base salary of commission mortgage loan officers will be significantly lower than those who are not provided commissions. All this makes mortgage loan officer training worthwhile in my opinion. It is the mark of a good planner to enter into this career, search for good training and make new forays into a very lucrative field of work.
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