What Is a Mortgage Originator?

A bank mortgage loan is a loan that borrowers use certain collateral as a guarantee to obtain from a bank. When the loan expires, the borrower must return it in full, otherwise the bank has the right to dispose of the collateral as compensation. The original lenders of mortgage loans were called mortgage originators, which could be mortgage brokers or mortgage banks, and were part of the primary mortgage market. There are two benefits to the mortgage originator: (1) A mortgage loan payment fee is collected, which is expressed in points, each point representing 1% of the loan amount. (2) The profit earned by the promoter on selling the loan at a price higher than the cost of initiation is called secondary market profit. If the mortgage interest rate rises, the sponsor will lose money when selling the loan in the secondary market. ^[1]