# Mortgage Broker License vs Mortgage Lender License *Reviewed 2026-05-15* > Whether you arrange loans for borrowers or fund them yourself determines which mortgage license you need. Here is how the broker and lender licenses differ and which fits your model. ## Mortgage broker license Authorizes a company to arrange residential mortgage loans by matching borrowers with wholesale lenders, without funding the loans itself. ## Mortgage lender license Authorizes a company to underwrite and fund residential mortgage loans with its own or warehouse capital. ## Comparison | Feature | Mortgage broker license | Mortgage lender license | | --- | --- | --- | | Who funds the loan | A third-party wholesale lender | Your company, often through a warehouse line | | Core activity | Matching borrowers to lenders and loan products | Underwriting and funding loans directly | | NMLS registration | Required, company and loan originators | Required, company and loan originators | | Net worth and surety bond | Bond amount varies by state, lower thresholds common | Higher net worth and bond thresholds in many states | | Secondary market | Loans close in the wholesale lender's name | Loans can be sold or serviced after closing | ## Which is right for you - Mortgage broker license: Choose the broker license if you arrange loans and match borrowers with wholesale lenders without funding the loans yourself. - Mortgage lender license: Choose the lender license if you underwrite and fund loans with your own or warehouse capital and may sell or service them afterward. Arrange or fund A mortgage broker connects borrowers with wholesale lenders and helps them through the application, but the wholesale lender underwrites and funds the loan. A mortgage lender underwrites and funds loans with its own capital or a warehouse line, and can then sell or service the loans. The activity you perform sets the license you need, and many states publish separate license categories for each. States that license mortgage activity through the Nationwide Multistate Licensing System require both the company and its loan originators to be licensed, with surety bonds and minimum net worth that often scale with the activity. Lender licenses commonly carry higher thresholds than broker licenses because the lender carries funding risk. Confirm the current requirement in every state where you take applications. See our state licensing summaries for a starting point, or talk with our team about a multi-state mortgage program. ## Frequently asked questions ### Can a company be both a broker and a lender? Yes. Many companies hold both authorizations and broker some loans while funding others. Each activity is licensed on its own terms, so confirm both per state. ### Do loan originators need their own licenses? Usually yes. States that license through the NMLS require individual mortgage loan originators to be licensed in addition to the company.