Do Mortgage Loan Officers Work on Commission? If you’re considering a career in mortgages, you may be wondering: Do mortgage loan officers work on commission?
The answer is yes. While some companies offer a small salary, commissions are the main source of income for loan officers. Understanding how commissions work is key if you’re exploring this career path.
How Loan Officers Get Paid Mortgage loan officers (LOs) typically earn income through:
Base Salary (at some banks or credit unions) $35,000–$55,000 annually. Stable, but lower commission splits. Commission on Closed Loans (industry standard) Usually 0.3%–1% of the loan amount. Example: On a $300,000 loan, commission can range from $900 to $3,000. The more loans you close, the more you earn. That’s why most experienced loan officers rely heavily on commission income.
→ Read more: Is a Mortgage Loan Officer a Good Job?
Commission Structures by Employer Commission Structures by Employer Banks / Retail Lenders Offer small base pay. Lower commissions (~0.3%–0.5%). Leads sometimes provided, but growth is capped. Independent Mortgage Brokers Higher commissions (~0.5%–1%). Commission-only model. Requires self-sourced leads. Loan Factory Model Keep 100% of your commission, pay only a flat $595 per file. No desk fees, no junk fees. Free access to MOSO platform: CRM, LOS, pricing engine, marketing automation. Mentorship, training, and leads provided. How Much Can Loan Officers Earn in Commission? How Much Can Loan Officers Earn in Commission? Junior Loan Officer: $50,000–$75,000 annually (base + commission). Experienced LO: $100,000–$200,000+. Top Producers: $300,000+ with strong referral networks. The U.S. mortgage market handled $458 billion in originations in Q2 2025 alone. Even closing a fraction of that volume can generate substantial commission income.
→ Read more: Junior Mortgage Loan Officer Salary & Career Outlook
Why Choose Loan Factory as a Loan Officer Why Choose Loan Factory as a Loan Officer Loan Factory is built to help loan officers earn more, work smarter, and grow faster.
100% commission – keep it all, only $595 per file. No desk fees or junk fees – stop losing income to unnecessary costs. Free MOSO platform – all-in-one CRM, LOS, pricing engine, marketing, compliance. 240+ wholesale lenders – real-time comparisons and 1-click locks. In-house underwriting + $500 processing – speed up closings, reduce admin work. Company-generated leads in 42 states – grow your pipeline faster. Mentorship from Thuan Nguyen (#1 LO in the U.S.) – learn directly from the best. Weekly training + Loan Factory Academy – sharpen skills and scale your career. Save ~$963/month by replacing multiple paid tools So, do mortgage loan officers work on commission? Yes - and commissions are the heart of the profession. While some firms cap your earnings, others like Loan Factory empower you to maximize income and scale your business with the right tools and support.
→ Read more: Best Mortgage Loan Officer CRM Tools to Close More Loans
At Loan Factory, you don’t just earn commission - you keep it, grow it, and build a long-term career backed by technology and mentorship.
Join webinar Loan Factory Today Join webinar Loan Factory Today: https://www.loanfactory.com/loan-officer – Get licensed, trained, and start closing loans faster.714-591-8143 for more details.
FAQs About Loan Officer Commissions 
