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This question is about loan officer jobs.
How much do loan officers make per loan?
A typical loan officer is paid 1% of the loan amount in commission. This means that on a $500,000 loan, a loan officer will earn a commission of $5,000. Many banks pass this cost to consumers by charging higher interest rates and origination fees.
A mortgage loan officer represents a bank, credit union, or other financial institution that assists borrowers in the application process. Most loan officers also work with individuals and small businesses on various other loans.
Loan officers must have a comprehensive knowledge of lending products, banking industry rules and regulations, and the documentation required for obtaining a loan.
Loan officers are paid either "on the front," "on the back," or some combination of the two. "On the front '' refers to charges that the borrower can see, such as fees for processing the loan, often called settlement costs. These fees can be paid either out of pocket when the borrower signs the papers or by incorporating them into the loan.
If a loan officer makes money "on the back," that means they are receiving a kind of commission from the bank for selling the loan to the borrower. This is a charge that the borrower does not see. When a loan officer claims to be giving the borrower a "no out-of-pocket" loan, they are still making money but are charging it "on the back."
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