The Top MLO Interview Questions

Understanding the Current MLO Landscape

Before diving into interview questions, it's crucial to understand the market you're entering. According to the Bureau of Labor Statistics, the median annual wage for loan officers was $74,180 in May 2024, with the highest 10 percent earning more than $145,780.

However, the industry has faced challenges. According to MBA's employment analysis, as of the first quarter of 2022, there were 115,273 active MLOs, representing a dynamic but competitive job market. This makes choosing the right employer more critical than ever.

Essential Questions About Compensation and Structure

1. "Can you explain your compensation structure in detail?"

Don't settle for vague answers about "competitive compensation." According to industry standards, MLO commission percentages can range from 20-80% depending on involvement in the transaction. Ask specifically about:

• Base salary vs. commission split
• Whether compensation is based on percentage or basis points
• Any caps on earnings
• Different structures for purchase vs. refinance loans
• How quickly commissions are paid out

2. "Are there quotas or minimum production requirements?"

According to MBA's Performance Report analysis, the industry has faced significant challenges with production margins. Progressive companies are moving away from tiered payouts and quotas that stifle growth. Understanding expectations upfront helps you evaluate whether the company's model aligns with your goals.

3. "What expenses am I responsible for?"

Critical follow-ups include:

• Marketing and advertising costs
• Lead generation expenses
• Technology fees
• Licensing and continuing education costs
• Errors and omissions insurance

Technology and Support System Questions

4. "What loan origination systems and CRM platforms do you use?"

As covered in LinkedIn's MLO interview guide, proficiency with technology is essential. Understanding the tech stack helps you assess:

• Training requirements
• Efficiency potential
• Integration capabilities
• Mobile accessibility

5. "What administrative support is provided?"

According to A Day in the Life of a Part-Time Mortgage Loan Originator, successful MLOs leverage support systems to maximize productivity. Ask about:

• Loan processor support
• Marketing assistance
• Administrative staff availability
• Underwriting team accessibility

Company Culture and Growth Questions

6. "What differentiates your top performers?"

This question, inspired by How to Start a Career in the Mortgage Industry, helps you understand what success looks like at this specific company. Listen for mentions of:

• Networking abilities
• Technology adoption
• Client service approaches
• Business development strategies

7. "What professional development opportunities exist?"

With continuing education requirements outlined in We Report Your CE to the NMLS, understanding how a company supports ongoing learning is crucial. Inquire about:

• CE course reimbursement
• Advanced training programs
• Mentorship opportunities
• Leadership development paths

8. "How do you support new MLOs in their first 90 days?"

What to Expect in Your First 30 Days as a New MLO emphasizes the importance of strong onboarding. Key areas to explore:

• Training timeline and structure
• Shadow opportunities with experienced MLOs
• Initial lead sources
• Performance expectations during ramp-up

Lead Generation and Marketing Questions

9. "What lead sources does the company provide?"

Understanding lead flow is critical for income projection. Successful MLOs need steady pipeline development. Ask about:

• Company-generated leads vs. self-sourced expectations
• Lead quality and conversion rates
• Marketing co-op programs
• Referral partner relationships

10. "How does the company support networking and business development?"

MBA research shows that networking remains essential for MLO success. Explore:

• Real estate agent partnership programs
• Community involvement initiatives
• Marketing budget or allowances
• Co-marketing opportunities

Compliance and Ethics Questions

11. "How does the company ensure regulatory compliance?"

Given the importance of compliance highlighted in How to Get Licensed as a Mortgage Loan Originator and CFPB guidelines, understanding the company's approach is vital. Ask about:

• Compliance training frequency
• Quality control processes
• Audit procedures
• How violations are handled

12. "Can you describe the company's approach to ethical lending?"

This question demonstrates your understanding of professional responsibility. Listen for mentions of:

• Fair lending practices
• Transparency with borrowers
• Handling of conflicts of interest
• Company values alignment

Market Position and Strategy Questions

13. "How is the company positioning itself for market changes?"

With Baker Tilly forecasting mortgage rates between 5.9% and 6.2% by the end of 2025, understanding company strategy is crucial. Explore:

• Product diversification
• Technology investments
• Market expansion plans
• Competitive advantages

14. "What percentage of business comes from purchase vs. refinance?"

This helps you understand income stability during market shifts. A healthy mix indicates resilience through market cycles.

Team and Collaboration Questions

15. "Can you describe the team structure and collaboration style?"

Understanding team dynamics helps assess cultural fit. As emphasized in A Career in Mortgage is Just a Few Steps Away, relationships are the currency of the mortgage world. Ask about:

• Team size and composition
• Collaboration vs. competition
• Knowledge sharing practices
• Team meeting frequency

16. "What's the average tenure of MLOs here?"

High turnover can signal problems. According to MBA's workforce analysis, stability matters for building a sustainable practice.

Red Flag Questions to Uncover Potential Issues

17. "Why is this position open?"

Listen carefully to the response. Expansion is positive; frequent turnover is concerning.

18. "What challenges is the team/company currently facing?"

Honest companies will share realistic challenges. Be wary of those who claim everything is perfect.

19. "Can I speak with current MLOs about their experience?"

Companies confident in their culture will facilitate these conversations.