# Mortgage Servicer License vs Mortgage Lender License *Reviewed 2026-05-15* > Funding a loan and servicing it afterward are separate activities that states license separately. Here is how the mortgage servicer license and the mortgage lender license differ and which you need. ## Mortgage servicer license Authorizes a company to collect payments, manage escrow, and administer residential mortgage loans after closing. ## Mortgage lender license Authorizes a company to underwrite and fund residential mortgage loans. ## Comparison | Feature | Mortgage servicer license | Mortgage lender license | | --- | --- | --- | | Core activity | Collecting payments and managing loans after closing | Underwriting and funding new loans | | When it applies | Over the life of the loan | At origination and funding | | Borrower contact | Billing, escrow, loss mitigation | Application, underwriting, closing | | NMLS registration | Required in states that license servicing | Required, company and loan originators | | Surety bond | Required by many states, amount varies | Required by many states, amount varies | ## Which is right for you - Mortgage servicer license: Choose the servicer license if you collect payments, manage escrow, and administer loans after they close. - Mortgage lender license: Choose the lender license if you underwrite and fund new loans at origination. Originate or service Mortgage lending and mortgage servicing are different jobs. A lender underwrites and funds the loan at origination. A servicer takes over after closing: collecting monthly payments, managing escrow for taxes and insurance, and handling loss mitigation if a borrower falls behind. A growing number of states license servicing on its own, separate from the lender license, with its own surety bond and reporting. Some companies originate and then service the same loans, so they hold both licenses. Others specialize in one activity. Because servicing licensing has expanded in recent years and the definitions vary, confirm the current requirement in every state where you fund or service loans before you operate. See our state licensing summaries or talk with our team about a mortgage licensing program. ## Frequently asked questions ### Do I need a servicer license if I service my own loans? In many states, yes. Servicing licensing often applies regardless of who originated the loan. Confirm the rule in each state where you service. ### Can one company lend and service? Yes. Companies that fund and then service the same loans commonly hold both licenses, each on its own terms per state.