What term describes a company or individual that originates and sells mortgage loans to investors?

The term that describes a company or individual that originates and sells mortgage loans to investors is "Mortgage Bankers." These entities are directly involved in the mortgage lending process and have the capability to fund loans using their own capital. After originating the loans, mortgage bankers typically sell these loans to investors in the secondary mortgage market, which allows them to free up cash and continue lending.

Mortgage bankers play a crucial role in the housing finance system as they help in providing access to capital for borrowers while creating investment opportunities for investors through the sale of these loans. This function is distinct from others in the mortgage industry, like mortgage brokers who primarily act as intermediaries between lenders and borrowers without holding the loans themselves or funding them directly. Loan originators are individuals who gather and process loan applications but may work under or alongside mortgage bankers rather than directly selling to investors. The term “Secondary Market” refers to the platform where mortgage loans are bought and sold after being originated, but it does not describe the entities that perform those actions.