How Much Do Mortgage Loan Officers Make in North Carolina?

How much do mortgage loan officers make?

The average annual income for a mortgage loan officer in North Carolina is $75,570, according to the U.S. Bureau of Labor Statistics. However, keep in mind that there is a wide income range for MLOs. Top earners can bring in over $100,000 per year.

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What do loan officers need to know?

Hone your skills. Loan officers must maintain confidence in their abilities, effective working relationships and a high level of self-motivation. Additionally, this role relies on customer service, communication and sales skills.

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Loan Officer Job Description

  • Sell, sell, sell! Always be closing!
  • That’s pretty much the job description of a loan officer
  • But you also have to be well-versed in customer satisfaction, mortgage lingo, and product knowledge
  • And stay up-to-date on the many rules/regulations involved

First off, a loan officer may be referred to as a mortgage planner, lending officer, MLO, mortgage specialist, dedicated lending associate, loan consultant, loan agent, mortgage professional, senior of any of these, or junior of any of these.

There are lots of creative names for the position depending on the company in question, but the job description will likely be the same regardless.

A loan officer may come into work in the late morning around 9 or 10am and work until 6-9pm.

The time may be structured to work around when companies are allowed to solicit consumers in their homes. The traditional peak hours for sales calls take place in the early evening, between 6pm and 9pm.

Of course, you could also be a go-getter who arrives at 6am and only works until the early afternoon. There is certainly flexibility when it comes to working hours, though it does depend on the type of company you work for.

If you work for a large company, such as a depository bank, credit unions, or a mortgage banker, chances are you’ll work the typical 9-5 schedule since bank branches are only open during those hours.

If you work for a smaller mortgage company, or a broker, you might be able to set your own hours and do whatever you please.

This has to do with compensation, as the former will likely get a base salary along with commission, while the latter will likely be a commission-only employee.

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Mortgage brokers won’t care when you come in or leave as long as you’re closing loans.

Money aside, the culture will be a lot different at a large lending institution versus a small shop. If you can stomach a dress code and an uber-corporate environment, the bank setting might work out nicely.

If you’re the type who would prefer to run your own business, but don’t have the knowledge or the wherewithal, a small shop could be a desirable place to be. At least to start.

If your loan officer works for a large FDIC bank

Many of the larger, nationally known banks pay their loan officers differently than the smaller mortgage banks/brokers. They will pay the loan officer a base salary and a small bonus amount based on the loan amount, not the total fees on a file.

Or, simply put — if a loan officer helps you with your mortgage and your loan amount is $200,000 and the loan officer is paid “30 bps”, the loan officer would make 30 basis points on $200,000 or $600.

One advantage to working with these loan officers is that they usually have a large brand behind them — so you have probably “heard of” the lender that they work for. Another advantage to working with these loan officers is that often times, their lender will be willing to “originate at a loss” mortgage loans so that they will have the ability to cross-sell a checking account, savings account, credit card or other bank-related products.

One disadvantage to working with a loan officer who works for a large FDIC bank is that they usually have relatively little rate and fee flexibility. Their rates and fee structures by and large “are what they are.”

The Average Salary

We’ll start with this nugget. The average loan officer makes just $63,650 per year, according to the Bureau of Labor Statistics. That’s not a lot considering the amount of work they do. Now a lot of this has to do with the increased regulations that came about after the housing crisis.

5. 4 Perks to Being a Mortgage Broker or Loan Officer

Thinking about getting involved in the mortgage loan industry? It just might be the career move you’ve been waiting to make!(14)

Jun 12, 2019 — How do mortgage loan officers make money? The mortgage company compensation/fee is built into your mortgage interest rate as a percentage of (15)

Feb 26, 2021 — If the MLO is a broker, they may be paid by their clients or by commission from the lender they partner with to close the loan. If the MLO is a (16)

How to Be a Top Producing Loan Officer

  • It’s simple really and there’s no secret formula
  • Work hard and close as many loans as possible
  • You can accomplish this by solid networking and putting in the time
  • There’s nothing magical about it, just strong work ethic

While there might be gimmicks and top 10 lists and classes that teach you “how to sell,” it really comes down to hustling. Honestly.

If you’re committed to the business, you can be really successful and earn a ton of money. When I worked for a wholesale lender, there were Account Executives who sat around and complained, and others who just put their heads down and dialed the phone.

That latter group made a lot of money, while the complainers made average salaries and eventually quit. Ultimately, it’s about work ethic and drive.

All the other stuff, like education and the art of selling, will come with experience. You can’t teach someone how to sell in a class, nor can you teach them everything about mortgages in a day or a week.

It takes time and real-life experience to master those things. But without motivation and hard work, it will mean very little.

So if you want to be successful as a loan officer, you need to work hard and network. Don’t be shy, make calls, visit real estate offices and link up with real estate brokers, and eventually it will get easier and easier.

Sure, you might have some nervous calls and meetings early on, but once you gain confidence, it’ll become second nature and pay dividends.

8. Average Pay For Mortgage Loan Officer

The average smaller mortgage pays compensation plans would create Aims to waive loan officers make six-figure right after six months of training. Meet.(24)

The average salary for a Mortgage Loan Officer is $49097. Visit PayScale to research mortgage loan officer salaries by city, experience, skill, employer and (25)

Their employers often do not pay them on an hourly basis, If you’re a mortgage loan officer who is not being paid overtime in Connecticut, (26)

Required Education

Most loan officers need a bachelor’s degree, usually in the field of business or finance. You may be able to become a loan officer without a bachelor’s degree, but you need to have related work experience in sales, customer service or banking.

Mortgage loan officers must have a Mortgage Loan Originator license. This license requires at least 20 hours of coursework, a passing grade on the exam and a background and credit check. You must renew your license every year. Individual states may also have additional requirements.

A number of schools and banking associations offer courses, training programs or training certifications for loan officers. Outside of mortgage loan officers, certification isn’t required, but it shows that you know what you’re talking about when it comes to the job, which may lead to better employment opportunities.

The median annual wage for loan officers is $63,650 according to the United States Department of Labor. The median wage means half the loan officers make less than this amount and half make more.

Loan officers for automobile dealers had the highest compensation with an annual median wage of $85,140, followed by loan officers who work in management of companies and enterprises with a median annual salary of $68,340.

A loan officer’s income depends on their employer. Some are paid a flat salary, while others are paid a base salary plus commission. The amount of your commission depends on the company where you work.

One survey showed that 45 percent of firms paid between 76 basis points to 150 basis points commission on each loan. Each basis point is 1/100th of one percent, so 76 basis points are just over ¾ of one percent. This means on a $100,000 loan, a loan officer would make around $760 commission.

Generally, the more work you have to do to generate clients on your own, the higher your commission. For example, someone who works for a small company with little support may get 1-to-2 percent of the loan amount. Someone else who works for a large company and is given a list of clients to contact might make 20-to-30 basis points or .2-to-.3 percent of the loan amount.

4. Financial intermediation might not even be a good option

Unrelated to mortgages, the investment management industry has an interesting example of how getting rid of financial intermediation might be best for everyone. “Index funds” automatically track and invest in markets, as opposed to using the traditional model of human fund managers being paid to actively choose investments.

As a result, not only do index funds cost significantly less — they usually outperform their human-managed counterparts, according to the SPIVA. In fact, this fund management strategy has been so successful that index funds have grown to account for 34% of market share.3

This example of index funds is a good reminder that consumers might benefit from other “disintermediated” financial services (such as mortgages), as well.

Loan officer average salary

Many loan officers are paid a salary or hourly rate, and others earn commissions and incentives on top of a lower base salary. Wage structures vary depending on the employer as well as the loan officer's job performance (how many loans you close). Other contributing factors include:

Education

Most employers will require their loan officers to hold at least a bachelor's degree, with some preferring a master's in finance or economics.

Credentials

Certain types of loans require originators to hold special credentialing, such as the MLO, or mortgage loan originator license. These credentials often require coursework and exam to be completed successfully, as well as a clean background and credit check. These credentials must be renewed annually.

Experience

Your salary will increase with experience. Whether it's getting an annual pay increase or closing bigger and more frequent commission-based products, higher pay comes with industry experience. Additionally, as your experience mounts, you'll be eligible to be hired into higher-paying roles with more responsibility.

Geographical location

Certain parts of the U.S. pay higher salaries due to the higher cost of living. As one could reasonably suspect, the highest salaries (and housing costs) can be found in New York, Mississippi and California, while some of the lowest wages in the industry are found in Louisiana, South Dakota and Hawaii.

Size of employer

Larger institutions tend to have higher budgets for higher salaries. This comes into play when they're seeking the most qualified candidates to fill important roles within their organizations.

This occupation is expected to trend upwards for the next few years, and opportunities can be found all over the U.S.

  • National average salary: $80,818 per year

  • Some salaries can range from $14,000 to $241,000 per year.

Related: Learn About Being an Underwriter

2. The best tools for the job

While technology has made financial services more efficient overall, mortgage banks in particular haven’t kept pace. What other reason could there be why so many lenders rely on physical paper and fax machines to share information?

Using antiquated tools is not only slow and annoying, it’s also a failure to use the best tools for the job. Making even a single loan involves handling huge amounts of data, performing complex calculations, and validating thousands of rules. Compared to human loan officers, computers are orders of magnitude faster, more accurate, and more efficient at doing these things.

A 2013 Oxford economic study of jobs susceptible to automation determined that the traditional role played by loan officers has a 98% likelihood of being replaced by computers.1

We don’t fully agree that loan officer jobs should be automated. We believe:

  • Computer systems should do the calculations.
  • Borrowers should have direct, transparent access to these systems.
  • Human loan officers should be available to offer support and expert guidance to borrowers — provided they aren’t being paid commission that skews their interests.
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Loan Officer Job Prospects

Because many different industries need loan officers, from real estate to banking, jobs are often available. However, according to the U.S. Bureau of Labor Statistics, the job market for loan officers will hold steady in the decade between 2020 to 2030. The BLS reports that approximately 25,000 openings for loan officers are projected each year, on average, over the decade.

These jobs will most likely occur because many loan officers may hit retirement age or leave the labor force for other reasons.

What Are the Highest Paying Cities in the U.S. for Loan Officers?

According to data from ZipRecruiter, the three top-paying cities in the U.S. for loan officers are San Jose, CA, Oakland, CA, and Tanaina, AK.

What about benefits?

MLOs in North Carolina and other states enjoy competitive pay with benefits. Many companies offer full benefits packages, including health insurance, life insurance, retirement plans, and more. Some offer additional perks like commission bonuses, gym memberships, and marketing support.

Years of Experience

As you gain experience as a loan officer, you’ll probably also gain more clients. As you gain more clients, you’ll see more money from commissions. Here’s a look at some average salaries you can expect based on your years of experience.

  • Less than 5 years: $40,000
  • 5 to 10 years: $46,000
  • 10 to 20 years: $49,000
  • More than 20 years: $50,000

Loan officers also have the opportunity to move to companies that pay higher commissions as they gain experience.

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