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.)

An originator may also be an entity creating a loan (e.g., a mortgage loan) and selling it to another party against origination fees. This process usually gives rise to a derivative product of a specific type: a security or product that derives its performance (cash flows) from that of another (e.g., mortgage-backed securities, MBSs).