What is the Typical Entry Level Mortgage Loan Originator Salary?

If you’re considering a career as a mortgage loan originator, one of your biggest questions is likely – how much does an entry level mortgage loan originator make? The salary for a beginner mortgage loan originator depends on several factors In this comprehensive guide, we’ll break down the typical pay range and what impacts income for those starting out in this mortgage career path

What is a Mortgage Loan Originator?

A mortgage loan originator also referred to as a mortgage loan officer or mortgage broker is the professional who works directly with borrowers to help them get approved for a home loan. Their primary responsibilities include

• Meeting with prospective homebuyers to discuss their financing goals and needs
• Collecting documentation and information for the mortgage application
• Consulting on different loan programs and options for the borrower’s situation
• Submitting completed applications to underwriters for approval
• Serving as the main contact for borrowers throughout the lending process

It’s a demanding but rewarding career, especially for those who enjoy sales and counseling roles. While experience is valued, it’s also possible to get started as an entry level mortgage loan originator

Entry Level Mortgage Loan Originator Salary

According to the U.S. Bureau of Labor Statistics, the average annual salary for a mortgage loan originator is $56,700. However, there is a wide range based on experience, location, and other factors.

Salary for Beginners

For those just starting out in the profession, the salary typically falls between:

• $30,000 – $55,000 per year

So a typical entry level mortgage loan originator salary is about $40,000-45,000 annually, or $15 to $22 per hour.

However, there are many variables that affect compensation, which we’ll look at next.

Factors Impacting Beginner Salary

Some key factors that influence the salary levels for entry level mortgage loan originators include:

• Location – Average salaries in high cost-of-living urban areas tend to be $10,000+ higher. Originator roles in rural locations pay on the lower end.

• Company size – Large national lenders and banks tend to pay more for beginners than small independent brokerages.

• Commission structure – Almost all originators earn commission. The commission percentage range impacts earnings potential.

• Loan volume – Income increases as a beginner originator builds their pipeline and closes more loans.

• Experience/skills – Even as a trainee, certain transferable skills or background can boost hiring offers.

The company, territory, portfolio performance, and work arrangement also impact starting salary ranges.

How Mortgage Loan Originator Salaries Work

Since the majority of the mortgage loan originator salary comes from commissions, it’s helpful to understand how their compensation packages are structured.

There are two main commission models:

Percentage of Loan Amount – Most commonly, the originator earns a percentage of the total mortgage loan amount they close. Often this is between 0.5% to 1% of the loan value. On a $250,000 loan with a 1% commission, they would earn $2,500.

Flat Fee – Sometimes a flat fee commission is paid instead, such as $1,000 per closed loan. This structure provides more consistency.

In addition to commissions, some entry level mortgage loan originators also receive a smaller base salary, such as $15-$20 per hour. Benefits like health insurance may also be included.

The compensation structure can vary by employer. But generally, the higher the closed loan volume and better portfolio performance, the more an originator can earn even early in their career.

How Experience Impacts Earning Potential

Experience plays a key role in determining mortgage loan originator pay. Let’s look at how salaries progress:

• First year – $30,000 to $55,000 range
• After 2-3 years – $60,000 to $75,000 range
• 5+ years experience – $75,000 to $100,000+ potential

With around 5 years experience, mortgage loan originators can reasonably expect to earn a six figure income. Proven loan production and people skills help accelerate salary growth.

Besides more earning potential, experienced originators also often move into leadership roles managing a team of junior loan originators. This allows them to earn overrides on their team’s production.

Job Outlook for Mortgage Loan Originators

The job outlook for mortgage loan originators is very strong. According to the Bureau of Labor Statistics, employment for loan officers is projected to grow 8% from 2020 to 2030, faster than the average across all occupations.

Rising home prices, mortgage rates, and demand for homes will require more qualified originators to help borrowers navigate financing. Emphasis on customer service and technology skills will be important for new origination talent.

Starting a Mortgage Loan Originator Career

If you’re interested in launching a career as a mortgage loan originator, the key steps are:

• Earn a high school diploma or bachelor’s degree in a field like finance or business
• Complete mortgage loan originator training and education courses
• Pass the SAFE loan originator test to obtain your license
• Apply for mortgage lender jobs, highlight sales abilities
• Consider earning additional certifications once in role

The typical entry level mortgage loan originator salary is around $40,000. But within a few years, six figure earning potential is attainable. If you have strong sales skills and passion for helping homebuyers, it can be a highly rewarding field both financially and personally.