Loan Officer Salary Rises Nearly 20 Percent

September 28, 2010 No Comments »

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Residential loan officers saw salary rise 17 percent over the past year, according to the Crowe Horwath LLP‘s 2010 Comprehensive Financial Institution Compensation Survey.

“In the past year, mortgage activity was up, in part from the first-time homebuyers’ tax credit and low prices prompting sales, but also in part from a significant uptick in mortgage refinancing,” said Timothy Reimink, a senior consultant in Crowe’s Performance group.

“Even though the tax credit expired, rates are still at historic lows, so it’s likely the mortgage activity will continue into the next year,” he added.

Loan officers make most of their money by originating loans, and not so much via base salary.

The median income for a loan officer in the United States is around $40,000, though some make significantly more, depending on their sales volume.

And the average may be dragged down by those who only work as loan officers part time, or fail to close more than a few loans annually.

What’s clear is that those who have stuck around in the business post-mortgage crisis are reaping the benefits of less competition and increased mortgage demand.

And it could get even sweeter if that blanket refinance legislation gets legs…

The survey, which compiled data from 340 U.S. financial institutions, found that total compensation, which includes base salary and discretionary pay, decreased for many banking positions over the past year.

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