Mortgage Bankers

Loan officers (including those who specialize in mortgages) earned median annual salaries of $63,040 in May 2018, according to the U.S. Department of Labor (DOL). The lowest paid 10 percent of loan officers made $31,870 or less, while the highest paid 10 percent earned $132,080 or more.

The DOL reports that the “form of compensation [for mortgage bankers] varies widely by employer. Some…are paid a flat salary; others are paid on commission. Those on commission usually are paid a base salary plus a commission for the loans they originate. [They] also may receive extra commission or bonuses based on the number of loans they originate or how well the loans perform.” PayScale.com reports that mortgage bankers earned bonuses that ranged from $2,000 to $77,000 in February 2020. They also received commissions that ranged from $15,000 to $142,000, significantly increasing their annual earnings.

Mortgage bankers that service their loans or those that they’ve purchased from other bankers earn compensation fees throughout the life of the loan. These include origination fees, interest payments, and servicing fees.

In addition to bonuses and commissions, mortgage bankers receive fringe benefits such as medical, dental, and life insurance; paid holidays, vacations, and sick days; personal days; profit-sharing plans; 401(k) plans; retirement and pension plans; educational reimbursement; and licensing reimbursement (to complete licensing examinations from the Financial Industry Regulatory Authority).