How To Become A Mortgage Loan Officer?

A mortgage loan officer is a reputable profession in the United States.

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Whether it’s to buy your dream house or to get a small place out of desperation, for both cases you need a loan. This type of mortgage loan isn’t handed to anybody and everybody; after proper scrutiny of your profile and documents, the loan is granted to you.

So if the borrower is asking money from the lender, and it is up to the lender to grant them money, where do mortgage loan officers come in the equation?

What does a Mortgage Loan Officer do?

Mortgage loan officers assemble customers’ monetary data like debts and tax, to audit if they are qualified for giving mortgage loans. They complete home loan credit applications dependent on public and nearby monetary norms and review their progress.

A mortgage loan officer is responsible of doing the following:

  • They accomplish mortgage loan human resource objectives by situating, preparing, relegating, booking, educating, guiding, and training employees; communicating job expectations; planning, monitoring, appraising job contributions; recommending compensation actions; adhering to policies and procedures.
  • They satisfy contract credit operational guidelines by contributing mortgage advance data to key plans and surveys; executing creation, efficiency, quality, and client support principles; settling issues; identifying mortgage loan system improvements.
  • They satisfy mortgage loan financial standards by giving yearly spending data; observing uses; recognizing changes; executing remedial activities.
  • They pull in new home loan credit applications by creating connections inside the network, explicitly with the real estate community; settling on deals decisions to imminent clients.
  • They endorse contract advances by analyzing application and supporting documentation; assessing credit-value; calculating repayment risk.
  • They complete mortgage loans by monitoring collection, check, and planning of home loan advance documentation; booking and finishing contract advance shutting.
  • They are also responsible for protecting the bank’s image by keeping mortgage loan information confidential.
  • They constantly upgrade their work knowledge by participating in educational opportunities; pursuing proficient distributions; keeping up close to home organizations; taking an interest in expert associations.
  • They are also responsible for accomplishing bank missions by completing related results as needed.

How to become a Mortgage Loan Officer?

Becoming a mortgage loan officer isn’t a very complicated process; and anyone can be one. It starts with getting the right education and qualified training, obtaining licensing and then work experience.

To start with becoming a mortgage loan officer, a person must obtain a bachelor’s degree in a related field. Although not completely necessary, it is preferred for a person to get a degree in business, finance, accounting, marketing, economics or a related field.

After this bachelor’s degree, it is preferred for a person to get a professional diploma or postgraduate degree in their field of specialization. And while they’re doing that, it is important to look for internship opportunities to get work experience and have some practical experience on your resume.

The next step is to get a license. According to KnowledgeCoop, it is important to remember that each state has specific guidelines that apply to mortgage loan officer licensure, and state agencies are the ones to actually issue licenses.

But there are a number of requirements listed in federal legislation that are applicable across the board. It is worthwhile to become familiar with the federal Secure and Fair Enforcement Act for Mortgage Licensing of 2008 (i.e. SAFE Act), a major bill passed by Congress in the wake of the mortgage lending crisis.

Per the SAFE ACT and the NMLS, mortgage loan officers are required to:

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  • Obtain licensing from their respective states
  • Register with the NMLS
  • Provide authorization to obtain a credit report
  • Provide a variety of identifying information
  • Provide fingerprints for a criminal background check
  • Provide a financial services employment history for the past 10 years
  • Disclose any financial regulatory body charges against them
  • Attest to the completeness and accuracy of the information provided

Mortgage loan officers need a mortgage loan originator license, which requires passing an exam, at least 20 hours of coursework and background and credit checks. Additional training takes place on the job.

Requirements to become a Mortgage Loan Officer

  • Experience as a mortgage loan officer or in a similar role
  • Previous experience in sales or customer support is an asset
  • Working knowledge of mortgage loan computer software (e.g. Calyx Point)
  • Ability to handle confidential information
  • Great mathematical and analytical skills
  • Attention to detail
  • Reliability and honesty
  • A valid license is a must
  • Degree in Finance or Business is a plus

Pros and Cons of being a Mortgage Broker

While becoming a mortgage broker may not be complicated, you still have to decide whether it’s absolutely the best thing for you to do. And you will be able to decide on that once you know the pros and cons of becoming a mortgage loan officer.

Pros Cons
Flexible work hours. You’ll need to work hard to get established.
Independence allows you to be the boss. Working with banks can lead to frustration.
Continually upgrading your skills will lead to you becoming an industry expert. There is a great deal of compliance and legislation that you’ll need to know.
You’ll constantly be thinking and dealing with figures. Dealing with significant amounts means you’ll have to be on the ball always.
Combining your sales and analytical skills will allow you to be successful. The skills needed to be a broker sometimes take years to master.

How much does a Mortgage Loan Officer make?

Mortgage loan officers typically make an impressive amount for all the hard work and services they provide to borrowers. The average yearly salary for a loan officer in 2019 was $73,650 per year according to the jobs website Indeed. According to the Bureau of Labor Statistics, the lowest 10% of wage earners in this field earn a yearly salary that is just under $32,820, but earners in the top 10% earn an average salary of over $132,290

This is how much a mortgage loan officer makes in each state.

State Annual Salary Monthly Pay Weekly Pay Hourly Wage
Massachusetts $79,640 $6,637 $1,532 $38.29
Hawaii $78,874 $6,573 $1,517 $37.92
Connecticut $78,430 $6,536 $1,508 $37.71
Rhode Island $75,982 $6,332 $1,461 $36.53
Washington $75,115 $6,260 $1,445 $36.11
Utah $75,021 $6,252 $1,443 $36.07
North Dakota $74,672 $6,223 $1,436 $35.90
Alaska $74,549 $6,212 $1,434 $35.84
New York $74,117 $6,176 $1,425 $35.63
Nevada $73,962 $6,163 $1,422 $35.56
South Dakota $72,491 $6,041 $1,394 $34.85
Iowa $72,460 $6,038 $1,393 $34.84
Maryland $72,007 $6,001 $1,385 $34.62
Oregon $71,604 $5,967 $1,377 $34.42
New Hampshire $71,565 $5,964 $1,376 $34.41
Kansas $70,876 $5,906 $1,363 $34.08
Nebraska $70,720 $5,893 $1,360 $34.00
Kentucky $69,940 $5,828 $1,345 $33.63
Virginia $69,792 $5,816 $1,342 $33.55
South Carolina $67,936 $5,661 $1,306 $32.66
Colorado $67,880 $5,657 $1,305 $32.63
California $67,879 $5,657 $1,305 $32.63
Delaware $67,340 $5,612 $1,295 $32.38
Vermont $67,333 $5,611 $1,295 $32.37
Mississippi $66,434 $5,536 $1,278 $31.94
Wyoming $66,434 $5,536 $1,278 $31.94
Oklahoma $65,729 $5,477 $1,264 $31.60
West Virginia $64,423 $5,369 $1,239 $30.97
Pennsylvania $64,112 $5,343 $1,233 $30.82
Arkansas $63,908 $5,326 $1,229 $30.72
New Jersey $63,809 $5,317 $1,227 $30.68
Michigan $63,657 $5,305 $1,224 $30.60
Idaho $63,620 $5,302 $1,223 $30.59
Illinois $63,562 $5,297 $1,222 $30.56
Maine $63,204 $5,267 $1,215 $30.39
Montana $63,188 $5,266 $1,215 $30.38
Minnesota $62,647 $5,221 $1,205 $30.12
Arizona $62,538 $5,212 $1,203 $30.07
Tennessee $62,508 $5,209 $1,202 $30.05
Indiana $62,137 $5,178 $1,195 $29.87
Missouri $62,113 $5,176 $1,194 $29.86
Ohio $62,056 $5,171 $1,193 $29.83
Wisconsin $62,054 $5,171 $1,193 $29.83
Texas $61,472 $5,123 $1,182 $29.55
Louisiana $60,757 $5,063 $1,168 $29.21
Georgia $60,329 $5,027 $1,160 $29.00
New Mexico $58,939 $4,912 $1,133 $28.34
Alabama $58,918 $4,910 $1,133 $28.33
North Carolina $57,892 $4,824 $1,113 $27.83
Florida $56,861 $4,738 $1,093 $27.34

Note: Sample rates have been extracted online, courtesy of ZipRecruiter.

How many loans does the average Loan Officer close?

Most loan officers close anywhere from 18 to 25 loans in a year, with some doing as many as 35 to 40. U.S. News ranks loan officers as #15 in its list of Best Business Jobs, with a median salary of $63,040. 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.

Conclusion

A mortgage loan officer is responsible for auditing mortgage situations and to see whether a borrower meets the lenders requirements. Primarily, loan officers advise, evaluate and authorize loans to people and businesses.

Becoming a mortgage loan officer isn’t as complicated, but a person must complete the basic number of educational requirements and qualifications like getting a bachelor’s degree in business, finance, economics or a related field. They are also required to specialize in their area of profession, and also gain work experience via internships and working part time for reputation mortgage companies.

It is also possible to become a mortgage loan officer without any prior experience; for this you will have to undergo some relevant training and work under the supervision of experts in the field. Mortgage loan officers earn a competitive salary for the work they do and the services they provide to their clients.

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Charles Bains

Charles Bains

Charles Bains started his insurance career as a marketing intern before pounding the pavement as a commercial lines agent in Orlando, FL. As an industry journalist, his articles have appeared in a variety of trade publications. His insurance television career, short-lived but glorious, once saw him serve as the expert adviser on an insurance-themed infomercial (yes, you read that correctly). Having recently worked for various organizations, coupled with his broader insurance knowledge, Charles is able to understand our client’s needs and guide them accordingly. He is a gem for Insurance Noon as his wide area of expertise and experience have been beneficial in conducting further researches to come up with solutions and writing them in a manner which is easy for everyone including beginners to comprehend.

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