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Loan Officer Earnings

 

Median annual earnings of loan officers were $48,830 in May 2004. The middle 50 percent earned between $35,360 and $69,160. The lowest 10 percent earned less than $27,580 while the top 10 percent earned more than $98,280. Median annual earnings in the industries employing the largest numbers of loan officers in 2004 were as follows:

Federal executive branch and United States Postal Service $56,900
Accounting, tax preparation, bookkeeping and payroll services 53,870
Management of companies and enterprises 52,260
Local government 47,440
State government 43,400

The form of compensation for loan officers varies. Most are paid a commission that is based on the number of loans they originate. In this way, commissions are used to motivate loan officers to bring in more loans. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the number of loans originated. Banks and other lenders sometimes offer their loan officers free checking privileges and somewhat lower interest rates on personal loans.

According to a salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, mortgage loan officers earned between $30,000 and $100,000 in 2005, consumer loan officers with 1 to 3 years of experience earned between $30,000 and $35,000, and commercial loan officers with 1 to 3 years of experience made between $45,500 and $70,000. Commercial loan officers with more than 3 years of experience made between $61,750 and $100,000, and consumer loan officers earned between $25,500 and $50,000. Earnings of loan officers with graduate degrees or professional certifications are higher. Loan officers who are paid on a commission basis usually earn more than those on salary only, and those who work for smaller banks generally earn less than those employed by larger institutions.

Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2006-07 Edition

Loan Officer Work in General
Loan Officer Working Conditions
Loan Officer Employment
Loan Officer Training
Loan Officer Job Outlook
Loan Officer Earnings




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