Wages & Outlook
Some lenders pay loan officers a commission based on the number or amount of the loans they make. A commission is a bonus payment that serves as an incentive to make more loans. The more loans made, the higher their wages. Other employers may pay loan officers a straight salary with no commissions. Still others pay a combination of salary plus commissions or bonuses.
Wages vary by specialization. In general, commercial loan officers earn more than those who specialize in consumer or mortgage loans.
Loan officers who work full time usually receive benefits. Typical benefits include sick leave, paid vacation, and health insurance. Some employers also provide a retirement plan.
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In Minnesota, about 10,221 loan officers work in this medium-sized occupation.
Most loan officer jobs are located in cities or suburbs. In rural areas, branch managers or assistant managers often handle loan officer duties.
- Banks and credit unions
- Mortgage bankers and brokers
- Personal credit companies
The number of loan applications processed each year is expected to increase as the economy recovers and more people apply for loans. Similarly, many businesses postponed borrowing funds for maintenance, improvement, and expansion during the recession. Commercial loans should increase as businesses are more willing to borrow and banks are more willing to lend.
However, computers are doing much of the processing. For example, computers are doing the credit scoring. Computer software analyzes a person's debts and credit and gives that person a score. Many companies rely only on these scores. Because the computer does the analysis, this process is fast, and loan officers complete applications more quickly. In addition, some people shop for loans on the Internet, thereby bypassing loan officers. The number of people who find loans this way is expected to increase. This will slightly decrease the demand for loan officers.
Job outlook in this occupation is affected by changes in the economy. An economic downturn and a rise in interest rates could lead to a drop in demand for loans. Loan officers may work fewer hours or be laid off during these periods.
|Seven County Mpls-St Paul, MN||4,577||5,221||644||14.1%|