Habib remained a loan originator until 2007.

Scholars have argued that this relaxation of standards was due to greater competition between securitizers for loans, and greater market power for loan originators.

Then the loan originator secures an investor (often a large institutional bank) to whom the loan will be sold, whether directly or through a securitization.

Therefore, warehouse funding allows the loan originators to provide mortgages at more competitive rates.

The difference is related to when the loan originator gets his funds with respect to the time at which the real estate transaction takes place.

Within six months, he was the top-producing loan originator, even making more than his manager.

Instead, Residential Funding gathers the payments from the loan originators and passes them on to the investors in the mortgages.

The primary servicer of a loan can be the loan originator, the mortgage banker or a third party and maintains direct contact with the borrower.

The company allows consumers to use its automated service to collect data from loan originators about specific loan terms being offered to the consumer.

Often the loan originator can increase the margin when structuring the product for the borrower.