How do mortgage loan officers get paid?
Loan officers and brokers are usually paid a loan-specific fee or commission, paid either by the borrower or by the lender. A lender can pay a salary, a fixed amount per loan, a fixed percentage of the loan amount, or a combination, and when paid per loan, the lender can set minimums or maximums paid per loan. Federal law prohibits commissions from varying based on the terms of the mortgage.
Mortgage loan officers in California are commonly paid on commission, typically through a loan origination fee of roughly 1% of the loan amount, paid at closing. The Bureau of Labor Statistics reported a median annual wage of $76,690 for loan officers in May 2025, with the lowest 10% earning less than $39,430 and the highest 10% earning more than $153,180.
Sources: BLS Occupational Outlook Handbook: Loan Officers.
Mortgage loan officers are paid in a few different ways. Some receive a flat salary, while others receive a base salary plus commission on each loan they originate. The U.S. Bureau of Labor Statistics reported a median annual wage of $76,690 for loan officers in May 2025, with the lowest 10% earning under $39,430 and the highest 10% earning more than $153,180.
Sources: BLS OOH: Loan officers.
Mortgage loan officers are typically paid by commission, commonly 1% to 2% of the loan amount, so income scales with the number and size of loans they close. Actual pay varies with loan volume, local market activity, and employer structure.
Sources: NMLS: Idaho state-specific PE and CE requirements for MLOs; Idaho DOF Guidance Statement 2020-01-CFB: financial responsibility/fitness of MLOs and key individuals.
Mortgage loan officers commonly earn commission of 1% to 2% of the loan amount, though pay structures vary by employer. The broader occupation paid a median annual wage of $76,690 in May 2025, according to the Bureau of Labor Statistics, and held about 283,000 jobs that year.
Sources: BLS Occupational Outlook Handbook: Loan Officers.
Compensation varies by employer. A mortgage loan originator may be paid a salary, hourly wages, or a commission per closed loan, often a base salary plus commission.
Sources: MCA 32-9-107: Prelicensing education requirements for mortgage loan originators; ARM 2.59.1752: State-specific prelicensing education.
Some loan officers are paid a flat salary, while others earn a base salary plus commission on each loan they originate, with extra commission or bonuses based on volume or performance, according to the U.S. Bureau of Labor Statistics. The median annual wage for loan officers was $76,690 in May 2025.
Sources: BLS OOH: Loan officers.
Mortgage loan officers commonly earn a commission of 1% to 2% of the loan amount they originate. The commission may be paid by the borrower, the lender, or both, and loan officers working for a single lender are paid by that employer rather than shopping among lenders as a broker does.
Sources: NMLS: New Mexico state-specific PE and CE requirements for MLOs; New Mexico FID: FAQs (mortgage loan companies and originators).
Loan officers are paid under several structures. Some earn a flat salary, while others earn a base salary plus commission, and extra commission or bonuses may depend on how many loans they originate or how well those loans perform. The median annual wage for loan officers was $76,690 in May 2025, according to the U.S. Bureau of Labor Statistics.
Sources: BLS Occupational Outlook Handbook: Loan Officers.
Most mortgage loan officers are paid commission on the loans they close, commonly calculated as a percentage of the loan amount and often split with the employing broker. Some earn a base salary plus commission instead. Income varies with loan volume, local market conditions, and experience, so it is not fixed or guaranteed.
Sources: NDCC Chapter 13-10: Mortgage Loan Originators (North Dakota Century Code); N.D. Admin. Code 13-08-01-01: Mortgage Loan Originator Fees.
Most mortgage loan officers are paid on commission, so pay depends on the number and value of loans closed rather than a fixed salary. Entry-level positions in particular are typically commission-based. The license itself defines an originator as someone who takes residential mortgage loan applications or negotiates loan terms for compensation or gain.
Sources: Oklahoma DOCC: Mortgage Loan Originator license page; NMLS: Oklahoma state-specific PE and CE requirements for MLOs.
In Rhode Island, a licensed mortgage loan originator must be a W-2 exclusive employee of one Rhode Island licensed mortgage broker or lender and cannot be paid as a 1099 contract employee. Pay is commonly commission on loans closed, often 1% to 2% of the loan amount split with the broker. Across the United States, loan officers earned a median of $69,990 per year as of May 2023, per the Bureau of Labor Statistics.
Sources: BLS OEWS: Loan Officers (13-2072), May 2023.
Mortgage loan officers are commonly paid by commission on each loan, often split with the broker. Salaried positions also exist; the Bureau of Labor Statistics reported a median annual wage of $76,690 for loan officers in May 2025.
Sources: BLS Occupational Outlook Handbook: Loan Officers.
Mortgage loan originators commonly earn a commission of 1% to 2% of the loan amount, so pay scales with loan volume rather than a fixed salary. Under West Virginia law, an individual who takes residential mortgage loan applications or offers or negotiates loan terms for compensation or the expectation of it must hold a state license. Employees of federally regulated banks and credit unions instead register through the NMLS Federal Registry.
Sources: W. Va. Code 31-17A-4: State license application and issuance (SAFE Mortgage Licensing Act); W. Va. Code 31-17A-5: Issuance of license (required findings).