Salaries of Loan Officers

The salaries for secured loan officers tend to be very good, although they are not as high as those of other financial professionals.

The US Bureau of Labor Statistics reported that the average yearly salary for a loan officer in 2009 was $63,210 a year. This translated into an hourly wage of around $30.39 an hour. These numbers are certainly above the national average but below wages in related careers such as financial analysis.

Many secured loan officers have much larger incomes. The BLS estimated that around 10% of loan officers made $105,330 a year or more. This means that it is certainly possible for a more experienced loan officer to earn a very good salary.

Bonuses and Commissions

Something else to consider is that many loan officers earn a large percentage of their income through bonuses and commissions. Earnings from these sources are not included in the Bureau's figures because they are not salary income.

Secured loan officers who receive bonuses and commissions can earn a much higher income, but their income may not be as steady. Their pay depends on the number of loans that they arrange. This means their income often falls drastically when the economy is bad.

It also means that loan officers' incomes can vary widely from year to year and month to month. Many people find they simply cannot afford to live like that.

The largest bonuses and commissions go to secured loan brokers. Brokers may earn a higher income, but they also face the expense and uncertainty of being in business for themselves. They usually have to pay for their own office, their license, their own advertising, and their own insurance. Some may also have to pay franchise fees to be able to sell certain kinds of loan products.

Employers of Loan Officers

Salaries of Loans Officers

The statistics indicate that loan officers working for different employers earn different salaries. Those who enter the financial industry and government service can find themselves in lucrative careers.

The highest salaries went to secured loan brokers who worked in the securities and commodities fields. The BLS reported that their average salary in 2009 was around $75,490 a year.

Those who worked in real estate also received a higher-than-average salary, usually around $72,810 a year. Loan officers who worked for the federal government earned around $70,150 a year.

Entry Level Salaries for Loan Officers

Entry-level salaries for secured loan officers were often much lower than the average pay in the profession. Glassdoor reports that entry-level loan specialists at JP Morgan Chase only make $27,000 a year. Those who work at some other banks such as Bank of America (BOA) and Wells Fargo do make quite a bit more. Wells Fargo paid around $47,000 a year while BOA paid about $44,000 a year.

Something to consider is that these figures may not include commissions on secured loans. Most of the salary of many loan officers does come in the form of commissions. It can often take beginners in the field several years to earn a significant level of commissions.

Mortgage Brokers' Salaries

Salary information for mortgage brokers was not available. Since most mortgage brokers work independently and rely on commissions for the majority of their income, it is hard to determine accurately what salaries mortgage professionals receive.

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