Ultimately, loan officers have the ability to earn several hundred thousand dollars a year (or more) if they work hard and make the right connections. The commission structure of an MLO varies widely from institution to institution depending on the division of commissions, salary, and other benefits and bonuses. As a loan officer, you have to go from one account to another in a single day, get a lot of information from multiple sources, and make high-pressure financial calls worth thousands of dollars. At the same time, the quality (and quantity) of mortgage loans right now isn't what it was a few years ago.
I came to the conclusion that the best experience is to work for the broker as a loan processor for some time and you will learn all the pros and 26 cons. It depends on whether you're comfortable working with individuals, which is what loan officers generally do. Mortgage loan officers make money on loan origination fees, closing costs, and servicing and selling loans. Loan officers have great potential to grow rapidly in the field, especially people who have strong sales, banking, and lending experience.
I also have 3 co-workers who are ER agents, so not only does it make me think that I can do it, but I now have opportunities for new loans. It's an open secret right now; home loan origination is one of the few careers where you can earn a six-figure income with a high school diploma. If you break it down as an hourly wage, it could be too high if the volume of loans is strong and efficiency is also high (that is, not many hours are wasted chasing bad leads). Often, loan officers implicitly or explicitly partner with a real estate agent or office so that they can provide financing to potential homebuying customers.
When it comes to experience, senior mortgage loan originators have more than 10 years of experience, mid-level MLOs are between 6 and 9 years old, and junior level loan officers have generally worked between 1 and 5 years. If you're looking for the highest-paid state to enter your career as a loan officer, these are the 10 highest-paid states according to Career Explorer. With unlimited income potential and the opportunity to gain experience and education on the go, becoming a mortgage broker can open up a lucrative and stable career path. Some brokerage firms have a limit on the dollar amount an MLO can get with a single loan, and this figure can be negotiated along with the commission.
Large financial institutions, such as banks, are more likely to pay their loan officers a fixed salary plus a small percentage of the loan originated.