How Much Does a Mortgage Loan Originator Make and What It Takes

As a mortgage loan originator, you'll have a significant impact on people's lives by helping them secure a home loan. According to the Bureau of Labor Statistics, the median annual salary for mortgage loan originators is around $63,000.

The amount of money a mortgage loan originator makes can vary depending on factors like location, experience, and the number of loans they originate. In some cases, top-producing loan originators can earn upwards of $200,000 or more per year.

To become a mortgage loan originator, you'll need to obtain a mortgage originator license, which typically requires completing a certain number of hours of education and passing a licensing exam. This typically takes around 20 hours of education and a passing score on the SAFE (Secure and Fair Enforcement for Mortgage Licensing) test.

Mortgage loan originators can earn a decent income, but it's not always straightforward. The average loan originator salary in the United States is $41,291.

The salary range for loan originators is quite broad, typically falling between $28,000 and $60,000 yearly. This means that some loan originators can earn significantly more than others.

According to the Bureau of Labor Statistics, the average mortgage loan originator (MLO) earned $63,960 in 2020. However, this number can vary depending on factors like home prices in your area and how hard you work.

Here's a rough idea of what to expect in terms of salary, based on the 90th, 75th, 25th, and 10th percentiles:

Some loan originators can earn even more, depending on their experience and location. For example, loan originators in South Dakota earn the highest average salary, and some companies, like Credit Human Federal Credit Union, are offering salaries of up to $63,167.

As a mortgage loan originator, your salary can vary significantly depending on the state and city where you work. The highest paying states for loan originators are South Dakota, where the average salary is $52,253, and Wyoming, where the average salary is $45,916.

A different take: California Mortgage Broker Salary

South Dakota stands out as the top paying state, with a significant lead over the second highest paying state, Wyoming. Loan originators in South Dakota earn an average of $25.12 per hour, which is also the highest hourly rate among all states.

Here are the top 5 highest paying states for loan originators:

New York, NY, is also a top paying city for loan originators, with an average salary of $49,830 and an hourly rate of $23.96. Fort Lee, NJ, and Urban Honolulu, HI, follow closely behind, with average salaries of $49,068 and $48,139, respectively.

Loan originators in these cities can expect to earn a higher salary compared to those in other parts of the country. If you're considering a career as a mortgage loan originator, these cities may be worth exploring.

Suggestion: Entry Level Mortgage Loan Originator Salary

Loan originator salaries can vary significantly depending on location and employer. According to recently added loan originator salaries, the highest average salary is $67,000, offered by Get It-Real Estate for a Commercial Loan Originator role in Scottsdale, AZ.

The lowest average salary is $31,305, offered by Primelending for a Loan Originator role in Monroe, NY. This highlights the importance of researching salaries specific to your location and job type.

Here's a breakdown of the average salaries for loan originators in different cities:

Keep in mind that these figures are subject to change and may not reflect the current market. It's essential to stay up-to-date with the latest salary trends and adjust your expectations accordingly.

As you can see from the data, loan originator salaries have been fluctuating over time. In fact, the highest-paying state for loan originators is South Dakota, where they can earn an average salary of $63,167.

The lowest average loan originator salary states are Nevada, Delaware, and Indiana, with salaries ranging from $31,305 to $42,157. These figures are based on recent data from the past few months.

Here's a rough idea of how loan originator salaries have changed over time:

Keep in mind that these figures are not comprehensive, but they do give you an idea of the salary trends over time. It's also worth noting that salaries can vary depending on factors like location, experience, and type of loan originator.

California offers a promising career outlook for Mortgage Loan Officers, with 3 out of 5 of the highest paying cities for MLOs located in the state.

San Francisco, Santa Clara, and Los Angeles are among the top cities for Mortgage Loan Officers, making California a lucrative place to work in this field.

The state's profitable environment is a major draw for those considering a career as a Mortgage Loan Officer.

California's high demand for skilled MLOs means there are plenty of opportunities for career advancement and professional growth.

ZipRecruiter reveals that these cities offer exceptional pay, making them a great choice for those looking to boost their income.

A different take: Are Loan Officers Paid on Commission

To become a successful Mortgage Loan Originator (MLO), you'll need the right qualifications and experience. A high school education or GED is the minimum requirement for competitive loan officer jobs in California.

State-licensed MLOs in California must complete 20-hours of S.A.F.E. NMLS-approved education to practice legally. This standardized test is required for MLOs across the US.

Having a Real Estate Broker license can give you an automatic bump in salary, with Indeed finding a 51.70% increase in pay. Completing a certificate or associate degree can also be beneficial, with 40% of loan officers choosing to do so.

Experience is also a key factor in determining MLO salary. As a full-time MLO, you can increase your earning potential by negotiating commission, developing your career with certificates and designations, and marketing your services.

Broaden your view: Mortgage Loan Originator Salary Florida

To succeed as a loan officer in California, you need a solid foundation in certain areas. At a minimum, you should have a high school education or GED.

A high school education or GED is the minimum requirement to be considered for competitive loan officer jobs in California. You'll also need to complete 20-hours of S.A.F.E. NMLS-approved education to practice legally.

State-licensed MLOs in California must complete 20-hours of S.A.F.E. NMLS-approved education to practice legally. You'll also need to complete 2 hours of California-specific law.

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Completing 2 hours of California-specific law is a must, covering topics like prohibited practices, financial privacy, and reasonable fees and charges. Having an official NMLS school for your MLO education is also a must.

An undergraduate degree in finance, accounting, or economics can give you a significant edge in the field. It shows you have the fundamental knowledge needed to excel as a loan officer.

Indeed found that MLOs with a Real Estate Broker license enjoyed an automatic bump in their salary by about 51.70%. This highlights the importance of additional licenses and certifications.

To become a competitive loan officer in California, you'll need to meet the minimum education requirement of a high school diploma or GED. However, to practice legally, you'll also need to complete 20-hours of S.A.F.E. NMLS-approved education.

You must also complete 2 hours of California-specific law that covers prohibited practices, financial privacy, and reasonable fees and charges. This is a standardized test for MLOs across the US, and it's essential to complete your MLO education from an official NMLS school.

Additional reading: Nmls Mortgage Loan Originator License

Indeed found that MLOs with a Real Estate Broker license enjoyed an automatic bump in their salary by about 51.70%. Career Explorer meanwhile found that 40% of loan officers chose to complete their certificate or associate degree.

An undergraduate degree in finance, accounting, or economics can catch employers' attention and show that you have the fundamental knowledge needed to excel in the field.

Does experience impact your salary as a Mortgage Loan Originator? The answer is a resounding yes. With more experience, you'll have opportunities to negotiate commission, develop your career, and market your services, leading to increased earning potential.

According to the Bureau of Labor Statistics, annual Mortgage Loan Originator salaries can range from $33,650 to $129,900. The majority of MLO salaries currently range between $45,540 and $93,490, with top earners making $133,850 annually.

As you gain years of experience, your salary will likely increase. A survey by PayScale.com showed the following correlation between years on the job and compensation:

It's worth noting that while experience can lead to higher salaries, many Mortgage Loan Originators do move on to other careers after a while.

A mortgage loan originator's salary can vary greatly depending on factors like experience, location, and type of loan.

Typically, an MLO's salary is based on commission, which can range from 1% to a negotiated percentage of the loan amount. For example, on a $500,000 loan, a commission of $5,000 is paid to the brokerage, and the MLO will get the commission percentage they have negotiated.

Some Mortgage Loan Originators and Mortgage Loan Officers are paid on commission only, which is common for smaller state-licensed mortgage brokers. If an MLO is hired by a bank or larger financial institution, they are often given a base salary as well as commission and benefits.

In California, the average Mortgage Loan Officer income ranges from $40,694 to $60,565, according to Salary.com. This is significantly lower than the average Mortgage Loan Officer income in California, which is $157,000 per year, as concluded by Glassdoor.

Here's a breakdown of average base pay for loan officers in California, based on experience, as reported by PayScale:

Yearly: $83,538

Working as a Mortgage Loan Originator (MLO) in California can be a lucrative career choice. California is one of the most profitable states to operate as an MLO.

You can expect to find high-paying opportunities in California, particularly in cities like San Francisco, Santa Clara, and Los Angeles. These cities are among the top-paying cities for MLOs in the US, according to ZipRecruiter.

Being an MLO in California can provide you with a stable and well-compensated career, making it an attractive option for those in the field.

If you're wondering how much a mortgage loan originator can earn, the salary varies greatly depending on the company and location.

According to our recent salary estimates, the highest-paying companies for loan originators are Centennial Bank and Cardinal Financial, with average salaries of $47,792 and $46,132, respectively.

At companies like D.R. Horton and Citywide Mortgage, the average salary for loan originators is highly competitive, with figures of $45,731 and $45,118, respectively.

A unique perspective: Credit Report Companies for Mortgage Brokers

Here's a breakdown of the top 5 companies for loan originator salaries:

In some locations, loan originators can earn significantly more. For example, a Real Estate Loan Center Originator I at Global Credit Union in Glendale, AZ, earns $48,387, while a Loan Originator at Get It-Real Estate in Raleigh, NC, earns $65,000.

Additional reading: Commercial Real Estate Mortgage Broker