A Mortgage Loan Officer, also known as a Mortgage Loan Originator or MLO, is a financial professional who plays a key part in the home buying process. They are the main point of contact when completing a mortgage transaction and it is their role to find the most suitable mortgage for the home buyer.
Taking into account salary, job market, stress, future growth, and work-life balance, US News ranked Mortgage Loan Officer #8 in Best Business Jobs and #56 in 100 Best Jobs in 2021.
Your role as an MLO starts with the ability to identify potential buyers through marketing and networking. However, you also need to collect information, maintain relationships with borrowers and other professionals in the industry (automating your sales pipeline is the key to success here), source and present loan options to homebuyers, and process applications. It is also the job of a Loan Officer to maintain a stable buyers’ market through vigilance and accurate processes, which significantly decreases mortgage fraud and foreclosures.
If you’ve ever wanted to become a Mortgage Loan Officer, you probably have questions. We’ve laid out the roadmap required to gain the skills and education needed to do this, along with some information on what to expect once you’re in the industry.
MLO Training Roadmap
It’s not necessary to have a bachelor’s degree to pursue the MLO career path, although a degree in Finance or Business could give you a solid launchpad into the industry. Regardless of whether you follow this route or not, all mortgage loan officers need to be licensed in order to sell mortgages to clients.
To get your MLO, you’ll have to complete the mandatory 20 hours of pre-licensure education and pass the Nationwide Multistate Licensing System & Registry (NMLS) exam. This program covers financial regulations, loan ethics, federal and state law, and a variety of in-depth topics around mortgages.
Following the class, there is a national test that you must pass called the SAFE Mortgage Loan Originator Test, which also includes a specific portion related to your state of trading. The test evaluates candidates on their knowledge of state and federal mortgage lending law. Many states have adopted the Uniform State Test, which applicants only need to take once. This makes it easier for licensees to apply for licensure in other states. You need a pass mark of 75% to complete this step. If you fail, you must wait 30 days between retakes and 180 following three consecutive fails so make sure you know your stuff.
Being a Mortgage Loan Officer requires a lot of commitment. You need to maintain your active license status by completing 8 hours of compulsory education each year and always ensure you’re on top of trends in the market. The last thing you want is your buyers teaching you something about the industry because you were completely oblivious to any major changes in rates, trends, or market crashes.
How Much Does A Loan Officer Make?
In 2019, the average Mortgage Loan Officer salary was $76,200 with top earners at $92,960 and the bottom of the scale bringing in $44,840. This is middle of the field with other professionals in the industry earning an average salary between $62,060 and $119,290. Financial Advisors made an average salary of $119,290, Financial Analysts $94,160, Insurance Sales Agents $67,780, and Real Estate Agents $62,060, in 2019. The highest-paid MLOs are based in New York ($103,040), Massachusetts ($91,460), Hawaii ($87,750), Maryland ($87,120), and the District of Columbia ($86,880).
How To Find Mortgage Loan Originator Jobs
Upon gaining your MLO License, some people will brave the industry solo and start their own mortgage business, while others will seek employment with an established agency. This will require a solid resume and cover letter as competition in this industry is high.
According to the Bureau of Labor Statistics (BLS), the states with the highest employment level for Mortgage Loan Officer jobs are: California, Texas, Florida, North Carolina, and New York. While the highest concentration of jobs are found in Los Angeles, New York City, Chicago, Dallas, and Phoenix.
So what’s your next step? Are you ready to take the plunge and gain your license or are you already part of the professional pool maintaining their active status each year? Share your experience in the comments below.
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