What is the salary of entry level Mortgage loan officer?

5 Replies

Does anyone know what the standard salary or compensation for mortgage loan officer for residential and commercial? I understand they vary but is there a standard? I got the impression 1 % commission was about average with no base pay.

One of the best kept secrets on the planet.. kind of like how much is that car dealer making on me.. at least it was in years past..

Originally posted by @George G. :
Does anyone know what the standard salary or compensation for mortgage loan officer for residential and commercial? I understand they vary but is there a standard? I got the impression 1 % commission was about average with no base pay.

 Hey George it depends on what kind of LO (loan officer) , in a retail big bank like Chase, in a refi assembly line plant like Loan Depot/Cash Call/Amerisave, a LO with a indepdent mortgage broker, a mortgage broker one man shop, or a LO with a mortgage company.

It can vary from flat rate of $500 per loan up to 2.75% of the loan amount and everything in between. Some geographical areas that are less competitive can go up to the  higher compensation ranges since its harder to get loans while some other areas are more competitive and you'll be in the 1.00%-1.50% range or less.

Originally posted by @Jay Hinrichs :

One of the best kept secrets on the planet.. kind of like how much is that car dealer making on me.. at least it was in years past..

One huge difference these days is that it's now lawful for the MLO to get paid any more or less depending on if you get an ARM, what rate you get, how many discount points you elect to buy, interest only v amortized, etc. And, magically, almost as soon as that law was passed, MLOs stopped pushing ARMs and higher rates.

Car dealership, different story entirely. And, actually, if you ask around at a car dealership, you will find that a lot of them (incl the F&I guys) are former 2007-era MLOs who like the pay-for-profitability model. 

When I'm like "here's the raw rate sheet for a 30YF and your scenario, tell me what rate you want" after someone goes under contract, that wouldn't work at a car dealership (nor would it have worked back in 2006 for mortgages). The old school MLOs are like "zomg you can't just show them the rate sheet and let them pick!!!" but younger people seem to like it and my response to the old guys is "wtf do you care if they see the rate sheet, our pay is flat no matter what they pick, there's no reason to 'sell' them any one option over another."