State medians come from the same OEWS release as the national figures. The cost-of-living column divides each state median by that state's BEA Regional Price Parity, restating pay in national-average dollars so a high-cost state and a low-cost one can be compared directly.
Loan Officer Salary (2026): Data, Outlook & How to Become One
The median pay for Loan Officers is $76,690 a year ($36.87/hr), according to BLS OEWS, May 2025. Employment is projected to grow 1.7% through 2034, with about 20,300 openings a year (BLS EP, 2024–2034). Typical entry-level education: Bachelor's degree.
SOC 13-2072Business and Financial OperationsLast updated August 23, 2026
- Median pay
- $76,690
- Projected growth
- +1.7%
- Openings a year
- 20,300
- Typical education
- Bachelor's
BLS OEWS, May 2025
BLS EP, 2024–2034
BLS EP, 2024–2034
BLS EP, 2024–2034
Also advertised as: Commercial Banker, Commercial Loan Officer, Corporate Banking Officer, Financial Aid Advisor, Financial Aid Counselor, Financial Aid Officer.
How much do Loan Officers make?
10th percentile$39,430
Entry / lowest-paid tenth
25th percentile$52,730
Lower quartile
Median (50th)$76,690
Half earn more, half earn less
75th percentile$104,080
Upper quartile
90th percentile$153,180
Top-paid tenth
| Median annual wage | $76,690 |
|---|---|
| Median hourly wage | $36.87/hr |
| Mean annual wage | $87,790 |
| People employed | 274,330 |
Versus all US occupations
At $76,690, Loan Officers earn 50% above the $50,980 median across all US occupations, a difference of $25,710 a year.
Versus business and financial operations occupations
Inside the Business and Financial Operations group, where the middle occupation pays $80,730, this is 5% below the group median.
Pay range
The top 10% earn $153,180 or more while the bottom 10% earn $39,430, a gap of 3.9×. That is an unusually wide spread, which usually tracks specialisation, employer type and years of experience.
Rank in the bank
This median pays more than 62% of the 923 occupations in the NueCareer career bank.
Cost of living
Massachusetts posts the highest raw median ($101,600), but once local prices are taken into account Kansas leads at $96,560 in national-average dollars.
Which states pay Loan Officers the most?
| State | Median | COL-adjusted | Employed |
|---|---|---|---|
| Massachusetts | $101,600 | $96,069 | 4,470 |
| Connecticut | $95,730 | $92,395 | 2,220 |
| New York | $95,710 | $88,685 | 10,840 |
| Minnesota | $95,170 | $96,501 | 6,430 |
| Colorado | $94,520 | $91,721 | 3,230 |
| Oregon | $94,440 | $91,369 | 4,220 |
| New Jersey | $92,920 | $85,400 | 6,200 |
| District of Columbia | $92,890 | $84,522 | 370 |
| Vermont | $88,710 | $90,559 | 350 |
| Kansas | $86,970 | $96,560 | 3,540 |
Is Loan Officer a growing career?
Loan Officers1.7%
All US occupations3.1%
+1.7% projected growth vs 3.1% for all occupations.
Slower than average
BLS projects employment of Loan Officers to change 1.7% over 2024–2034, against 3.1% projected for all occupations. That is 5,000 more jobs.
Annual openings
About 20,300 openings are projected each year, 6.7% of the 301,400 jobs that existed in 2024. Most come from workers leaving the occupation, not from growth alone.
Despite limited employment growth, about 20,300 openings for loan officers are projected each year, on average, over the decade.
Most of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.
Demand for loan officers is expected as both businesses and individuals seek credit to finance commercial investments and personal spending. Loan officers will be needed to evaluate the creditworthiness of applicants and determine the likelihood that loans will be paid back in full and on time.
However, the decline of bank branches and the increased use of productivity-enhancing technology in loan processing are expected to slow employment growth.
How to become a Loan Officer
Most loan officers need no licence at all. Mortgage loan originators do, and which one you need is decided by your employer, not by you. Work for a bank, savings association, credit union or Farm Credit System institution and you are federally REGISTERED under Regulation G: fingerprints, a criminal background check and a unique NMLS identifier, with no examination and no required coursework. Work anywhere else, an independent mortgage lender or broker, and you must be state LICENSED under Regulation H: 20 hours of approved pre-licensing education, a score of at least 75 percent on the SAFE MLO test, a credit report, a criminal background check and a bond, renewed at least annually with 8 hours of continuing education. Both appear in NMLS, both give you an ID number, and they are not the same thing.
The credential path, step by step
- Work out which regime your employer puts you in
Regulation G covers employees of a "covered financial institution": national banks, member banks, insured state nonmember banks, savings associations, Farm Credit System institutions and federally insured credit unions, along with their qualifying subsidiaries. Those employees register. Everyone else who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain must hold a state licence. People performing purely administrative or clerical tasks are not mortgage loan originators at all.
- Get the degree or the equivalent experience
BLS records a bachelor's degree as the typical entry-level education, usually in a field such as business or finance, plus moderate-term on-the-job training after hire. Some jobseekers enter without a degree on the strength of banking, customer service or sales experience, and mortgage companies often prefer candidates with residential mortgage or real estate experience.
- If you will be federally registered, the process runs through your employer
The institution must require you to register with NMLS, obtain a unique identifier and maintain it, and must not let you originate before you do. You submit fingerprints for an FBI criminal background check. The SAFE Act does not require you to take approved education or to sit the SAFE test in order to be actively registered; instead the institution provides periodic training and obtains a credit report to assess financial responsibility. A de minimis exception applies to an employee who has never been registered or licensed and who acted as a mortgage loan originator for 5 or fewer residential mortgage loans in the past 12 months.
- If you will be state licensed, start with the 20 hours20 hours minimum, more where your state adds its own requirement
At least 20 hours of pre-licensing education reviewed and approved by NMLS, which must include at least 3 hours of federal law and regulations, 3 hours of ethics covering fraud, consumer protection and fair lending, and 2 hours of training on lending standards for the nontraditional mortgage product marketplace.
- Pass the SAFE MLO test at 75 percent
The SAFE MLO National Test with Uniform State Content is 120 multiple-choice items, of which 115 are scored and 5 are unscored, weighted 24 percent federal mortgage related laws, 20 percent general mortgage knowledge, 27 percent mortgage loan origination activities, 18 percent ethics and 11 percent uniform state content. Federal law sets the pass mark at not less than 75 percent correct. You may take the test three consecutive times with at least 30 days between attempts; fail three in a row and you must wait at least 6 months, which NMLS administers as a 180-day wait, before trying again.
- Clear the character, credit and bond checks, then renew every year
A state must find that you have never had a loan originator licence revoked, have no felony conviction in the previous 7 years and no felony ever involving fraud, dishonesty, breach of trust or money laundering, and have demonstrated financial responsibility, character and general fitness. You submit fingerprints through NMLS for state and national criminal history checks and authorise an independent credit report, and you must be covered by a net worth or surety bond requirement or pay into a state fund. Renewal is at least annual and requires 8 hours of NMLS-approved continuing education, of which at least 3 hours must be federal law and regulations, 2 hours ethics and 2 hours nontraditional mortgage lending.
Exams you have to pass
SAFE MLO National Test with Uniform State Content (SAFE MLO Test)
120 multiple-choice items, 115 of them scored and 5 unscored, covering federal mortgage related laws (24 percent), general mortgage knowledge (20 percent), mortgage loan origination activities (27 percent), ethics (18 percent) and uniform state content (11 percent). Federal law requires a score of not less than 75 percent correct. Three consecutive attempts are allowed with at least 30 days between each; after three failures the wait is at least 6 months. Only state-licensed originators must take it: federally registered originators are not required to sit it at all.
Administered by Nationwide Multistate Licensing System and Registry (NMLS), developed under 12 U.S.C. 5105(d).
- How long the training takes
20 hours of pre-licensing education for a state licence, and none at all for a federal registration
The credential itself is a matter of days rather than years. What takes time is the qualification behind it: BLS records a bachelor's degree as the typical entry-level education and moderate-term on-the-job training after hire. A formerly state-licensed originator who goes 5 years or more without a valid licence, not counting time spent as a registered originator, must sit and pass the test again.
- Continuing education
Required to stay credentialed
For state-licensed originators it is federally mandated and annual: at least 8 hours of NMLS-approved education, including at least 3 hours of federal law and regulations, 2 hours of ethics covering fraud, consumer protection and fair lending, and 2 hours of nontraditional mortgage lending. Credits cannot be carried between years and the same course cannot be repeated in the same or successive years. Instructors of an approved continuing education course earn 2 hours of credit for every hour taught. Federally registered originators have no individual continuing education requirement at all; the employing institution must instead provide periodic training relevant to their origination activities.
Licensing and state variation
Licensed state by state
The licence is issued by each state's own mortgage regulator through NMLS, and Regulation H sets only the floor. Every state must impose the 20 hours of approved pre-licensing education with its 3 or 3 or 2 hour split, the 75 percent pass mark, the felony bars, the fingerprint and credit checks and the bond or net worth requirement, and must renew licences no less often than annually with 8 hours of continuing education. Above that floor states add their own requirements, and BLS notes that individual states may have additional requirements. Two consequences catch people out. First, a state-licensed originator may not apply continuing education credits from one year to a later year, may not take the same approved course twice in the same or successive years, and only gets credit in the year the course is taken. Second, nothing in a federal registration counts toward a state licence: an originator moving from a bank to an independent mortgage company starts the Regulation H minimum standards from the beginning, education and test included.
Who governs the credential
- Consumer Financial Protection Bureau (CFPB) — Writes both halves of the split: Regulation H (12 CFR part 1008) sets the minimum standards a state must impose before it can license a loan originator, and Regulation G (12 CFR part 1007) sets the federal registration requirements for originators employed by covered financial institutions.
- Nationwide Multistate Licensing System and Registry (NMLS) — The system of record for both state licensing and federal registration, developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. It issues the unique identifier, approves pre-licensing and continuing education courses, and delivers the SAFE MLO test. It does not itself grant or deny licensing authority.
- State mortgage regulators — Issue and renew the loan originator licence. Each state must maintain a licensing, supervisory and oversight authority meeting the minimum standards in Regulation H, and may impose requirements above them.
Credential detail for loan officers is researched by hand from the bodies that issue it, not derived from BLS or O*NET. Sources last checked August 23, 2026. Requirements change: confirm with your own state board before enrolling in anything.
- US Bureau of Labor Statistics, Occupational Outlook Handbook: Loan Officers · checked August 23, 2026
- eCFR, 12 CFR part 1008: S.A.F.E. Mortgage Licensing Act, State Compliance and Bureau Registration System (Regulation H) · checked August 23, 2026
- eCFR, 12 CFR part 1007: S.A.F.E. Mortgage Licensing Act, Federal Registration of Residential Mortgage Loan Originators (Regulation G) · checked August 23, 2026
- NMLS: Federal Registration Requirements for MLOs · checked August 23, 2026
- NMLS MLO Testing Handbook: SAFE MLO National Test with Uniform State Test Content Outline · checked August 23, 2026
- NMLS MLO Testing Handbook: Retaking a Failed Test and Waiting Periods · checked August 23, 2026
- CFPB: SAFE Act examination procedures · checked August 23, 2026
What the federal data says
Loan officers typically need a bachelor’s degree and on-the-job training. Mortgage loan officers must be licensed.
| Typical entry-level education | Bachelor's degree |
|---|---|
| Preparation needed (O*NET job zone) | Medium preparation |
| Work experience in a related occupation | Less than 5 years |
| Typical on-the-job training | Moderate-term on-the-job training |
What education people in the job have
O*NET incumbent survey: the highest level of education reported by people already working as loan officers.
- Bachelor's Degree68.7%
- Some College Courses12.8%
- Associate's Degree (or other 2-year degree)11.2%
- High School Diploma6.1%
- Post-Baccalaureate Certificate1.1%
What does a Loan Officer do?
Evaluate, authorize, or recommend approval of commercial, real estate, or credit loans. Advise borrowers on financial status and payment methods. Includes mortgage loan officers and agents, collection analysts, loan servicing officers, loan underwriters, and payday loan officers.
Loan officers evaluate, authorize, or recommend approval of applications for personal and business loans.
Day-to-day tasks
- Explain to customers the different types of loans and credit options that are available, as well as the terms of those services.
- Obtain and compile copies of loan applicants' credit histories, corporate financial statements, and other financial information.
- Meet with applicants to obtain information for loan applications and to answer questions about the process.
- Analyze applicants' financial status, credit, and property evaluations to determine feasibility of granting loans.
- Review and update credit and loan files.
- Handle customer complaints and take appropriate action to resolve them.
- Work with clients to identify their financial goals and to find ways of reaching those goals.
- Stay abreast of new types of loans and other financial services and products to better meet customers' needs.
O*NET core tasks, ordered by reported importance.
Working conditions and hours
Most loan officers work full time, and some work more than 40 hours per week.
Where the work happens
- Indoors, in a climate-controlled space, every day
Physical demands
- Seated for more than half the working day
Working with people
- Constant contact with other people
- Face-to-face discussions every day
- Dealing with customers or the public is very important
Pressure and stakes
- Meeting strict deadlines at least weekly
Autonomy
- A lot of freedom to make decisions without checking first
Schedules: BLS Occupational Outlook Handbook, 2024–2034 edition. Conditions: O*NET Work Context survey, showing only the signals people in the job report decisively one way or the other.
Where loan officers work
| Credit intermediation and related activities | 79% |
|---|---|
| Management of companies and enterprises | 4% |
| Automobile dealers | 4% |
BLS Occupational Outlook Handbook, 2024–2034 edition.
Core skills
- Active Listening4.0/5
- Speaking4.0/5
- Reading Comprehension3.9/5
- Critical Thinking3.8/5
- Writing3.4/5
- Mathematics3.3/5
- Active Learning3.1/5
- Monitoring2.9/5
Transferable skills
- Judgment and Decision Making3.9/5
- Social Perceptiveness3.3/5
- Complex Problem Solving3.3/5
- Time Management3.1/5
- Service Orientation3.0/5
- Coordination2.9/5
- Persuasion2.9/5
- Negotiation2.9/5
Tools and software
- Data base user interface and query software · in demand
- Electronic mail software · in demand
- Enterprise resource planning ERP software · in demand
- Office suite software · in demand
- Presentation software · in demand
- Spreadsheet software · in demand
- Video conferencing software · in demand
- Word processing software · in demand
- Accounting software
- Compliance software
- Content workflow software
- Customer relationship management CRM software
“In demand” marks an O*NET Employer-Based Hot Technology, software named in real job postings for this occupation.
What personality type suits a Loan Officer?
Interest profile: O*NET Occupational Interests, scored 1–7
Realistic1.4
Investigative2.3
Artistic1.0
Socialprimary3.6
Enterprisingprimary5.0
Conventionalprimary6.1
Day to day this is work built around organising, following procedures and working precisely with data, combined with leading, persuading, selling and making decisions.
Closest MBTI types
NueCareer fit scores: cosine similarity between each MBTI type's interest vector and this occupation's O*NET interest profile. Not a BLS or O*NET figure; the method is documented on our methodology page.
Loan Officer: frequently asked questions
How much do Loan Officers make?
Loan Officers earn a median of $76,690 a year (BLS OEWS, May 2025). That is 50% above the $50,980 median for all US occupations. That works out at $36.87/hr. The middle half earn between $52,730 and $104,080. The top 10% earn $153,180 or more.
Do you need a degree to become a Loan Officer?
Yes. BLS reports a bachelor's degree as the typical entry-level education for Loan Officers, and O*NET rates the preparation needed as medium preparation. Employers typically expect less than 5 years of related work experience first. BLS also lists moderate-term on-the-job training as typical on-the-job training. In O*NET's survey of people already doing the job, 68.7% hold bachelor's degree.
Is Loan Officer a growing career?
It is growing, but slowly: 1.7% over 2024–2034 against 3.1% for all occupations (BLS EP, 2024–2034). BLS still projects about 20,300 openings a year, mostly from workers retiring or moving to other work.
What does a Loan Officer do?
Loan officers evaluate, authorize, or recommend approval of applications for personal and business loans. A core O*NET task: explain to customers the different types of loans and credit options that are available, as well as the terms of those services. Employers most often ask for Data base user interface and query software, Electronic mail software, Enterprise resource planning ERP software.
Which states pay Loan Officers the most?
The highest state medians for Loan Officers are Massachusetts ($101,600), Connecticut ($95,730), New York ($95,710) (BLS OEWS, May 2025). Adjusted for local prices using BEA Regional Price Parities, Kansas moves to the top at $96,560.
What personality type suits a Loan Officer?
O*NET scores Loan Officers highest on the Conventional, Enterprising and Social interest areas, so the work mixes organising, following procedures and working precisely with data with leading, persuading, selling and making decisions. On NueCareer's MBTI-to-interest mapping the closest types are ESFJ, ESTJ. Personality is a fit signal, not a gate. The free NueCareer quiz scores your own profile against all 923 occupations in the bank.
How long does it take to become a Loan Officer?
20 hours of pre-licensing education for a state licence, and none at all for a federal registration. The credential itself is a matter of days rather than years. What takes time is the qualification behind it: BLS records a bachelor's degree as the typical entry-level education and moderate-term on-the-job training after hire. A formerly state-licensed originator who goes 5 years or more without a valid licence, not counting time spent as a registered originator, must sit and pass the test again.
Do you need a license to work as a Loan Officer?
Yes, and it is issued by the state you work in, not nationally. The licence is issued by each state's own mortgage regulator through NMLS, and Regulation H sets only the floor. Every state must impose the 20 hours of approved pre-licensing education with its 3 or 3 or 2 hour split, the 75 percent pass mark, the felony bars, the fingerprint and credit checks and the bond or net worth requirement, and must renew licences no less often than annually with 8 hours of continuing education. Above that floor states add their own requirements, and BLS notes that individual states may have additional requirements. Two consequences catch people out. First, a state-licensed originator may not apply continuing education credits from one year to a later year, may not take the same approved course twice in the same or successive years, and only gets credit in the year the course is taken. Second, nothing in a federal registration counts toward a state licence: an originator moving from a bank to an independent mortgage company starts the Regulation H minimum standards from the beginning, education and test included.
What exams do you have to pass to become a Loan Officer?
The SAFE MLO Test (SAFE MLO National Test with Uniform State Content). 120 multiple-choice items, 115 of them scored and 5 unscored, covering federal mortgage related laws (24 percent), general mortgage knowledge (20 percent), mortgage loan origination activities (27 percent), ethics (18 percent) and uniform state content (11 percent). Federal law requires a score of not less than 75 percent correct. Three consecutive attempts are allowed with at least 30 days between each; after three failures the wait is at least 6 months. Only state-licensed originators must take it: federally registered originators are not required to sit it at all.