An issuer (of a debt instrument or a similar types of instruments) is an entity that creates marketable financial instruments either based on a type of debt or by pooling financial assets (loans, securities, etc.) and creating new securities, in the form of, or corresponding to different tranches, etc. The issued securities (known as debt instruments or securitized products) will be sold to investors as an opportunity or means for earning a profit. An issuer is generally any entity that issues securities to the market, including stocks, bonds, notes, MBSs, etc.

On the other hand, the term “originator” has different meanings depending on context. An originator may be an entity that pools debt (with different risk-reward profiles) into portfolios, before selling them to to issuers. An origination is the process of initiating or starting an instrument or arrangement but without being the ultimate issuer (the party issuing it to potential holders/ bearers, etc.)

For example, a mortgage originator is a party that initiates the process of creating the mortgage loan, including pooling of financial assets and structuring of the pool, etc.) Then, it will hand it over to the final or actual issuer against a fee (origination fee).

In short, an issuer is the final or ultimate seller of financial instruments to the market, though it may, itself, be an originator, creating and structuring the marketable securities in addition to its direct responsibility for taking them to the market under its name and being directly involved with the holders (potential investors). An originator, however, cannot assume the role of an issuer, as its role is legally confined to all preparatory work (packaging and pooling) or the process of origination.