The narrative of a steep decline in licensed loan officers (LOs) may be misleading. Data indicates that licensed LOs decreased from a peak of 233,938 in 2022 to 192,793 in 2024, but this drop, amounting to 18%, is less severe than the 50% or more often cited. The earlier statistics reflected total licenses rather than unique individuals. Furthermore, the average volume per loan officer has decreased significantly, suggesting a more nuanced competitive landscape than a mere reduction in numbers.
The 2020 figure reflects total licenses issued meaning an LO licensed in five states is counted five times. The 2024 number counts unique individuals.
While there's undoubtedly been a decline in loan officer numbers, it's not quite as jaw-dropping as the figures floating around the internet.
According to RETR's data, the true decline of producing loan officers shows a modest 10% drop, not the alarming 50%-plus some suggest.
The competitive landscape depicts that while the number of loan officers has decreased, average volume per loan officer has fallen significantly since the market peak in 2020.
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