Earnings and Advancement of Loan Originators
So you’re seriously considering becoming a loan originator?
The simple truth is, a job as a loan originator can pay well over most any kind of profession you can think of, presuming you aren’t the son or daughter of a media mogul or on your way to completing medical school.
Some people do actually earn six figures without any college let alone finishing high school. Most would think you’d have to be some genius computer software programmer or start some disruptive successful business. However the idea of being a loan originator has altered conventional wisdom, in particular because the real estate market skyrocketed in the last few years.
Even after the housing crash, loan originator are still making money as they’ve adapted to tighter underwriting guidelines and so have home buyers. Although, the amount of loan originators has decreased considerably with all the new educational requirements.
Being a Loan Originator Can Be Lucrative
When a loan closes for the loan originator, it is often a nicely sized check from their client. It could be $10,000 or even $30,000 for just one transaction in high cost markets often without charging the borrower. How’s that for motivation? For some people, receiving a big check is the remedy enough to push you to do even better. However, you need to ask yourself some important questions before stepping into an LO position in the mortgage industry.
Number one: It is not a job where you watch the money just roll in on autopilot. Some arrangements are easy but most aren’t. You need to factor in stress, lost deals, combative borrower personalities, and the never ending task of chasing paperwork. Then it is not as glamorous as you might think.
Keep yourself organized and know that you need more than one deal in the pipeline and you’ll survive or thrive.
It’s not the right job for everybody, and there is without a doubt a lot to learn prior to beginning your career as a mortgage originator. Once you see a big check come your way, even in the hard times, it is tough to walk away because you know you are one deal away from another big check.
Aside from that, here’s a job description of a Loan Originator.
The workday for a loan officer is usually 10am until 7 or 8pm.
Loan originators will need to manage their time effectively to be successful. Often times that entails making 100s of call to industry people every day. They are looking for a 1-3% closing ratio out of every 100 calls.
Loan Originator Educational Requirements:
While a high school diploma is not mandatory for some companies to be a loan originator, the NMLS has certain state requirements and courses that need to be passed along with a federal test. In some cases, a bachelor’s degree is required at larger firms with asset management or other services for high-net worth customers.
Loan Originator Salary:
A large majority of loan officers are paid on commission only and no base salary. So, it is performance based. The average annual pay for a mortgage originator is about $40,000 in the U.S.A. However, numerous mortgage originators create their wealth by simply working hard and making the right contacts and the end resultt is they earn a few hundred thousand dollars annually.
Career Advancement:
Mortgage originators usually remain in the company they start with if it offers a solid product base. They may change their title to Senior Loan Originator, but usually it means they’ve been in the business for more time as compared to the average loan originator.
If other mortgage companies pay higher commissions, or even a base salary due to past product, they will make a move
For the loan originators who are very well versed in their products and are successful, the next step up is to become a licensed mortgage broker versus a loan originator to have their own branch or office. The goal here is to employ their own loan officers, and earn a commission from each transaction they make. NetBranch Nationwide offers that type of opportunity for experience loan originators.