Mortgage Industry Employment Moderates After Increasing Last Year; Pay up from Two Years Ago
Written By: Joel Palmer, Op-Ed Writer
Employment for mortgage underwriters, processors and other industry professionals shot up in the first quarter of last year and has remained steady since. The increasing demand in mortgage lending has also led to a slight increase in the average salary for industry professionals.
According to Bureau of Labor Statistics, there were just under 400,000 workers employed in the mortgage banker and mortgage broker industries in January 2021. By April 2021, as demand for mortgage loan demand soared amid low rates and an improving economy following the worst of COVID-19, the industry had added about 20,000 workers. That number has remained steady since, with 425,200 mortgage bankers and brokers employed in February of this year, down from 426,000 the previous month.
Residential nonbank mortgage lenders lost 1,500 workers from their payrolls in January, while mortgage brokers increased their numbers by 1,700 workers, according to the BLS.
Comparing current salary data with similar data compiled two years ago shows mortgage underwriters and mortgage processors are collectively earning a little more since the boost in industry demand.
For example, the median annual salary for a mortgage underwriter in January 2020 was just under $75,000, according to career website Indeed. At the beginning of March 2022, Indeed listed the average base salary for the profession at $97,000.
In 2020, PayScale showed an average salary of $64,853 for mortgage underwriters, with the top 10 percent of earners making more than $88,000. Today’s average, according to PayScale, is $68,000, with the upper 10 percent of earners at $91,000.
Underwriters at different experience levels have seen their salaries rise in the last two years. According to PayScale:
Entry level underwriters’ average salary has remained steady at $50,000
Underwriters with one to four years experience earned an average of $57,000 in 2020 and make $60,000 today.
Underwriters with five to nine years experience have increased their annual earnings from $64,000 to $66,000.
Those with 10 to 19 years experience make an average of $74,000 today, compared with $70,000 two years ago.
The average pay for those with 20 years or more has increased slightly from $76,000 to $78,000.
Mortgage loan processors have experienced similar wage increases in the last two years:
Glassdoor reported the median annual salary for processors was $40,600 in January 2020, while Indeed lists the current average salary as $50,500 and PayScale reports it is $45,000.
Entry level processors earned $32,000, on average, in January 2020 and make $34,600 today.
Processors with one to four years experience earned an average of $34,500 in 2020 and make $36,800 today.
Processors with five to nine years experience have increased their annual earnings from $38,800 to $41,000.
Those with 10 to 19 years experience make an average of $43,800 today, compared with $41,000 two years ago.
The average pay for those with 20 years or more has remained steady at just over $43,000.
About the Author
As an NAMP® Opinion Editorial Contributor, Joel Palmer is a freelance writer who spent 10 years as a business and financial reporter and another 10 years in marketing for the insurance and financial services industries. He regularly writes about the mortgage industry, as well as residential and commercial real estate, investments, and retirement income planning. He has also ghostwritten books on starting a business, marketing, and retirement income planning.
