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A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting syndicate.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


1. A bank that makes a loan, especially a mortgage loan, to a client. The originator has the ability to sell that loan to another party, usually to create a derivative product of some kind. As a result, one often hears about originators in discussions of mortgage-backed securities.

2. An investment bank that works with a company in planning a new issue from the earliest stage. The originator usually becomes the syndicate manager when the issue actually is made.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


A financial institution that makes loans that are then resold.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Another argument against standards based on predominant characteristics is the lack of influence the originator firm has over securitized assets.
The servicer, whether it be the originator of the assets or a third-party servicer, has a responsibility to perform, which includes having to undertake reasonable collection efforts to collect delinquent payments.
The rating agency explains that the OA analysis primarily determines if the origination, underwriting and closing practices applied by the originator are in line with Moody's expectations for good loan quality; and (ii) the originator is acting as a prudent mortgage lender within its stated risk/reward strategy.
Since the assets do not exist at the date of the financing, the continued operation of the originator will be required to generate the assets in the future.
Legal Considerations -- The legal structure, typically supported by legal opinions rendered by counsel in the originator's jurisdiction and in any off-shore location where the SPV(s) is (are) located, should address three principal issues: the transfer of the receivables and reserve fund from the originator to the SPV; the perfection of a valid security interest in the SPV; and the enforceability of this security interest.
While it is possible that the purchase price for the receivables may be reduced, or that the originator may be required to provide some type of credit enhancement, the transaction still may provide the benefits described above.
Consequently, and as otherwise would be required in theory by Article 4 of the UCC, the bank is unable to authenticate the originator's signature since none is required to effect a funds transfer.
As the compliance officers and directors are working around the clock to reduce the risk the financial institution encounters, the originators are working the same hours to attract potential clients and close loans.
In 2011, my company measured what originators understood about the consultative selling process with the purpose of providing an objective analysis that companies could use to analyze what sales training is needed at the originator level to improve sales results.
What does all this mean for the originator? The traditional loan origination process itself is going to go through significant change.

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