Are Banks Paying LO's Less That Independent Mortgage Bankers?
Yes. Banks are paying their loan officers less than independent mortgage bankers, though, the difference is made up for in sales support according to recent reports.
"On a per-loan basis, loan officers working for bank-owned/affiliated mortgage companies make an average of 74 basis points per loan of the amount," according to National Mortgage News.
"Their counterparts at independent mortgage bankers make an average of 120 basis points."
According to a Stratmor infographic, banks provide an increase rate of marketing support to LO's. Therefore the lowered pay is negated by the fact that there is extra input from big name banks.
"Among the loan officers that work for a bank, 58% responded the company provides their marketing materials and 75% said the company paid for their personal website," according to the report.
"For nonbank loan officers that was 41% and 53%, respectively."
To learn more about the balance between LO's working for banks and LO's working for independent mortgage bankers, click on the image above.