Evaluating a career in the mortgage lending industry? Read this before starting

Do you want to choose a career where you can make a difference and earn a six-figure income while enjoying a flexible work-life balance?

If yes, then working in the mortgage lending industry as a loan officer might just be the right profession for you. 

Did you know that mortgage loan originators (MLOs) can earn anywhere between $150K to $170K annually while helping people achieve their home ownership dreams. 

A career as a MLO in the United States can unlock a myriad of rewarding and fulfilling career opportunities, especially if you are an ambitious and motivated individual. 

Mortgage loan originators are employed by banks, credit companies, private lenders, and financial institutions to work with borrowers and provide them with guidance and service. 

Loan originators (or loan officers) act as the bridge between lenders and borrowers and they help clients navigate through the steps of getting a loan approved. 

Due to the growing demand for housing and residential real estate, the number of job opportunities are also increasing and the career prospects are looking bright. 

The Bureau of Labor Statistics in the U.S. has forecasted a strong demand for licensed loan originators and if you are interested in exploring a career, now is a good time to get started. 

In addition to the high paying salary and comfortable work-life balance, loan officers also enjoy perks such as healthcare coverage, paid time off and a vast professional network. 

If you are excited to embark on a financially lucrative and emotionally fulfilling career path, you need to prepare yourself for working in the industry by meeting the prerequisites. 

One of the most important requirements for working with financial lenders and credit companies is getting a mortgage loan originator license in your state. 

Only licensed professionals are allowed to work with clients, earn commissions, and enjoy the benefits and perks of this career path. 

Pursuing a career in the mortgage lending industry might seem like a daunting task, especially if it is going to be your first career and you have no prior experience. 

To help you get started with the licensing process and the other key aspects of starting a new career, we have put together this in-depth guide. 

Who is a Loan Officer and what do they do

You might be aware that most new homebuyers seek financing to buy a new property or purchase real estate. 

Getting a mortgage is a crucial step of buying real estate and in many cases, it is an essential aspect which enables people to achieve their home ownership dreams. 

A loan officer is a licensed professional which helps facilitate the process of getting a mortgage and ensures that lenders and borrowers are able to work with each other. 

As a mortgage loan originator, you will represent a bank, lending company, credit provider, or financial institution and use your knowledge and skills to assist and advise borrowers. 

Loan originators are expected to be familiar with the different types of loans offered by lenders and financial institutions so that they can give the right advice to borrowers. 

Generally, loan officers and originators perform a diverse set of tasks and duties as part of their job roles. Here are some of the typical duties of a mortgage loan officer:

• Meeting with applicants and potential clients to understand their requirements for loans and financing. 
• Responding to inquiries from potential clients via phone, email, or text messages and answering their queries.
• Collecting the required data such as income stubs, credit reports, assets, debts, tax liabilities and other financial documents to qualify an applicant. 
• Analyzing the credit history, income, financial health, and overall creditworthiness of a potential client to profile them. 
• Assisting clients and customers in understanding the loan process and completing the loan application. 
• Educate customers about the various types of loans and financial services along with the loan application process, laws, and regulatory guidelines.
• Review all documents, applications, and disclosures for compliance and completeness to ensure they are accurate and updated. 
• Approve loans within a specified period of time by examining the financial profile and documents provided by borrowers. 
• Negotiate the loan terms, payment plans, terms and conditions, and interest rates on behalf of or with your clients.
• Advise borrowers on how to get the best value for their money and how to maintain compliance with the state and federal regulations for consumers. 
• Promote and cross-sell financial products and services from your employer to prospective as well as existing clients. 
• Maintain proper documentation, records, and paperwork of client and customer interactions while ensuring confidentiality. 
• Collaborate with underwriters, closers, funders, and the processing team to ensure the loan applications are closed on time. 
• Communicate with clients regarding key updates and important milestones such as closing dates, payment terms, and any other important information. 
• Handle consumer complaints, manage client expectations, and resolve any problems associated with the loan application or mortgage process.
• Participate in industry events, networking meetups, new training, and marketing activities to expand your clientele and upskill yourself.

As evident, the role of a mortgage loan officer is a blend of administrative, operational, marketing, accounting, sales and customer service duties. 

This is why completing a mortgage licensing course is essential to building a successful career in the long run, especially if you do not have prior experience in the industry. 

In the coming sections, we are going to dive deeper into MLO courses and how to complete them to prepare yourself for your job. 

Let us take a closer look at what are some professional benefits of getting licensed so you can make an informed decision about choosing this career path. 

Benefits of working as a mortgage loan officer

If you are wondering whether it is worth putting in the time, effort and cost required to become a licensed mortgage loan officer, the answer is an absolute yes. 

Here are some important benefits you can forward to as a loan originator in the U.S. 

1. High earning potential: 

The most important advantage of working as a MLO is the high starting salary and a good scope of increasing your earnings as you progress in your career. 

According to salary data from job sites, MLOs enjoy a high base pay of $60K which does not include additional commissions and bonuses. 

Additionally, with just a year of experience, you can progress to earn a six-figure income and after a couple of years in the industry, can even surpass $150K annually.

Many loan originators prefer working on a commission model i.e. they usually charge a fixed commission rate of between 1 to 1.5 percent of the loan amount provided. 

If earning a handsome salary is on your career wishlist and you want to achieve financial independence, then a career as a loan originator can help you get there. 

2. Flexible work schedule:

For many professionals, having a flexible work schedule is a huge boon, especially if you're a parent or a busy individual with personal duties to cover. 

A career as a mortgage loan originator can help you achieve a stable work-life balance, thanks to the flexibility of defining your own working hours. 

As long as you meet your goals and complete your duties on time, you can work remotely without having to follow the same nine-to-five office routine every day. 

Since you will be working directly with prospective customers and clients, you can tailor your officer hours around their availability.

Independent MLOs also get to choose how many hours they want to work in a week or a month based on their financial goals and targets. 

3. Comprehensive job benefits:

In the mortgage lending industry, many employers provide comprehensive benefits to their employees which is another huge advantage for professionals. 

From healthcare which covers the basic needs of an individual to paid holidays and vacation time which are discretionary spends, a career as a loan originator can give you a variety of benefits to enjoy. 

Additionally, you can also make use of value-added job benefits such as - retirement plans, catered meals, team meetups and offsites to name a few. 

According to surveys, most MLOs prefer the generous benefits offered by their employers - no wonder why this job profile is rated very highly on the scale of employee satisfaction. 

4. Opportunities for professional growth: 

If you are seeking a well-defined career path where you can progress and advance to grow professionally, then working as a loan originator can be a great fit. 

After starting your career as a licensed loan officer in the U.S., you can progress in your career by gaining experience and completing the required mortgage loan originator course. 

As you grow and advance in your career, you can move up the ranks to more strategic and managerial roles and take on leadership roles and responsibilities. 

Top MLOs can choose to work independently and start their own consulting firms to be their own boss and control their earnings and commissions directly. 

Now that you have learned about the exciting possibilities and enticing rewards of working as a mortgage loan originator, let us walk you through what it takes to become one. 

Becoming a MLO with no experience 

The key to starting a new career without any experience is completing the necessary education and training to equip yourself with the required knowledge and skills. 

To work as a mortgage loan originator, it is mandatory that you obtain a MLO license in your state by fulfilling all the licensing requirements. 

The first step in getting your license is completing a mortgage loan originator course from your state. 

As per the Nationwide Multistate Licensing System (NMLS) guidelines, it is mandatory for all applicants to complete at least 20 hours of NMLS approved pre license education. 

Pre-license education will cover fundamental courses and topics related to the mortgage lending industry and your job profile. 

Some of the course topics will be - mortgage lending principles, lending laws, interest rates, federal laws and regulations, ethics and consumer rights, and non-traditional mortgage lending. 

Note that you can choose to complete your NMLS approved education by joining a classroom-based college or by enrolling in an online, self-paced learning course. 

This foundational knowledge will not only prepare you to start working with clients, but it will also help you thrive and build a successful career. 

Most importantly, completing a MLO course will help you gain confidence to complete the next important step in your licensing journey i.e. taking the SAFE MLO licensing exam. 

The NMLS requires all applicants to apply for and take the MLO licensing test in their state. To obtain your MLO license, you must pass the test by scoring at least 75 percent or above.