To learn the mortgage market, one must understand the fundamental differences between mortgage origination, servicing, holding, and participation.
- The company or individual who creates the mortgage loan is referred to as the originator.
- The company or individual who collects loan payments and interacts with the borrower is the mortgage servicer.
- The company or individual who owns the mortgage loan is known to hold the loan.
- When more than one company or individual lend a portion of the entire mortgage loan, all such lenders are participating in the mortgage loan.
In our Law 101 posts, we define terms, phrases, or concepts with the goal of conveying core information in order to set the stage for more complex discussions.