Web www.ocouha.com

www.ocouha.com

An internet presentation of the Occupational Outlook Handbook plus related career guidance information

Loan officers

May 2005 employment and annual earnings distribution, wage and salary workers

Loan Officers: Evaluate, authorize, or recommend approval of commercial, real estate, or credit loans. Advise borrowers on financial status and methods of payments. Include mortgage loan officers and agents, collection analysts, loan servicing officers, and loan underwriters.

Loan officers held about 291,000 jobs in 2004. About 9 out of 10 loan officers were employed by commercial banks, savings institutions, credit unions, and related financial institutions. Loan officers are employed throughout the Nation, but most work in urban and suburban areas. At some banks, particularly in rural areas, the branch or assistant manager often handles the loan application process.

Median annual earnings of loan officers were $48,830 in May 2004. The middle 50 percent earned between $35,360 and $69,160. The lowest 10 percent earned less than $27,580 while the top 10 percent earned more than $98,280. Median annual earnings in the industries employing the largest numbers of loan officers in 2004 were as follows:

Federal executive branch and United States Postal Service $56,900
Accounting, tax preparation, bookkeeping and payroll services 53,870
Management of companies and enterprises 52,260
Local government 47,440
State government 43,400

The form of compensation for loan officers varies. Most are paid a commission that is based on the number of loans they originate. In this way, commissions are used to motivate loan officers to bring in more loans. Some institutions pay only salaries, while others pay their loan officers a salary plus a commission or bonus based on the number of loans originated. Banks and other lenders sometimes offer their loan officers free checking privileges and somewhat lower interest rates on personal loans.

According to a salary survey conducted by Robert Half International, a staffing services firm specializing in accounting and finance, mortgage loan officers earned between $30,000 and $100,000 in 2005, consumer loan officers with 1 to 3 years of experience earned between $30,000 and $35,000, and commercial loan officers with 1 to 3 years of experience made between $45,500 and $70,000. Commercial loan officers with more than 3 years of experience made between $61,750 and $100,000, and consumer loan officers earned between $25,500 and $50,000. Earnings of loan officers with graduate degrees or professional certifications are higher. Loan officers who are paid on a commission basis usually earn more than those on salary only, and those who work for smaller banks generally earn less than those employed by larger institutions.

(from the Occupational Outlook Handbook: Loan Officers)

See more recent statistics for employed workers below.

May 2005 employment and annual earnings distribution, wage and salary workers

National Occupational Employment and Earnings by Industry (NAICS sector and 3-digit industry group)

Loan officers
 Percentile earnings distribution
10th25th50th75th90th
Construction
Occupational Outlook Handbook employment: 610
mean earnings: $59,620
(EC) (def) (IG)
$26,090$33,750$47,860$64,570$120,120
Construction of Buildings
employment: 420
mean earnings: n.a.
n.a.n.a.n.a.n.a.n.a.
Heavy and Civil Engineering Construction
employment: 170
mean earnings: $68,700
$32,220$41,830$53,410$73,790$137,950
Manufacturing
employment: 70
mean earnings: $45,990
(EC) (def) (IG)
$25,310$29,320$34,980$43,880$81,250
Wholesale Trade
employment: 50
mean earnings: $64,190
(EC) (def) (IG)
$30,260$38,560$54,660$89,820$116,220
Retail Trade
employment: 770
mean earnings: $61,630
(EC) (def) (IG)
$30,370$37,240$53,710$77,760$103,560
Motor Vehicle and Parts Dealers
employment: 760
mean earnings: $61,800
$30,370$37,150$53,950$77,950$104,050
Information
employment: 930
mean earnings: $63,100
(EC) (def) (IG)
$31,460$40,500$53,270$72,000$106,570
Internet Service Providers, Web Search Portals, and Data Processing Service
employment: 930
mean earnings: $63,110
$31,460$40,500$53,270$71,990$106,670
Finance and Insurance
employment: 309,290
mean earnings: $59,390
(EC) (def) (IG)
$28,470$36,010$49,200$70,300$102,980
Monetary Authorities - Central Bank
employment: 80
mean earnings: $64,190
$29,320$37,990$56,870$81,010$102,840
Credit Intermediation and Related Activities
employment: 298,740
mean earnings: $59,190
$28,400$35,930$49,120$70,140$102,490
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
employment: 3,370
mean earnings: $67,410
$28,320$34,080$51,580$80,940$141,840
Insurance Carriers and Related Activities
employment: 6,990
mean earnings: $64,190
$31,770$39,350$51,620$74,200$110,320
Funds, Trusts, and Other Financial Vehicles
employment: 100
mean earnings: $68,020
$36,840$40,660$48,120$73,400$138,170
Real Estate and Rental and Leasing
employment: 3,440
mean earnings: $65,490
(EC) (def) (IG)
$30,910$41,170$53,810$78,690$111,940
Real Estate
employment: 3,400
mean earnings: $65,370
$30,810$41,130$53,760$78,320$111,700
Rental and Leasing Services
employment: 50
mean earnings: $71,750
$36,940$42,410$55,570$97,660$118,070
Professional, Scientific, and Technical Services
employment: 3,050
mean earnings: $51,590
(EC) (def) (IG)
$28,830$36,010$44,030$57,660$83,870
Professional, Scientific, and Technical Services
employment: 3,050
mean earnings: $51,590
$28,830$36,010$44,030$57,660$83,870
Management of Companies and Enterprises
employment: 7,090
mean earnings: $59,450
(EC) (def) (IG)
$30,070$38,480$51,180$70,370$98,090
Management of Companies and Enterprises
employment: 7,090
mean earnings: $59,450
$30,070$38,480$51,180$70,370$98,090
Administrative and Support and Waste Management and Remediation Services
Occupational Outlook Handbook employment: 2,060
mean earnings: $50,400
(EC) (def) (IG)
$27,430$33,050$46,180$63,290$78,630
Administrative and Support Services
employment: 2,060
mean earnings: $50,400
$27,430$33,050$46,180$63,290$78,630
Educational Services
employment: 210
mean earnings: $44,510
(EC) (def) (IG)
$26,400$32,730$41,330$54,930$69,720
Educational Services
employment: 210
mean earnings: $44,510
$26,400$32,730$41,330$54,930$69,720
Health Care and Social Assistance
employment: 130
mean earnings: $39,590
(EC) (def) (IG)
$13,050$29,960$39,750$47,840$57,680
Ambulatory Health Care Services
employment: n.a.
mean earnings: $30,120
$11,510$12,700$29,540$38,530$44,980
Hospitals
employment: 40
mean earnings: $46,100
$30,070$36,210$43,070$54,480$68,830
Social Assistance
employment: 40
mean earnings: $42,540
$27,860$37,390$41,950$48,010$55,490
Other Services (except Public Administration)
employment: 340
mean earnings: $53,740
(EC) (def) (IG)
$29,170$39,650$51,480$63,250$80,000
Religious, Grantmaking, Civic, Professional, and Similar Organizations
employment: 340
mean earnings: $53,740
$29,170$39,650$51,480$63,250$80,000
Federal, State, and Local Government (OES Designation)
employment: 4,570
mean earnings: $61,500
(def) (IG)
$40,700$49,360$60,810$72,730$85,160
Federal, State, and Local Government (OES Designation)
employment: 4,570
mean earnings: $61,500
$40,700$49,360$60,810$72,730$85,160

source: Occupational Employment Statistics Program; about these estimates

The (EC) links lead to data from the Economic Census from the Census Bureau.

The (def) links lead to 2002 NAICS industry definitions from the Census Bureau.

The (IG) links lead to Industry at a Glance industry profiles from the Bureau of Labor Statistics.