In a securitization transaction, the originator generates the assets to be securitized, usually loans, which are expected to create the revenue stream that forms the basis for the transaction and permits regular payment of principal and interest to be made to the holders of the asset-backed securities (ABS) issued in the transaction (see Practice Note, Securitization: US Overview).

The originator is typically a financial institution that extends credit, such as a bank or mortgage lender. Other originators include large commercial enterprises, utilities, or specialist entities set up for securitization purposes. The originator transfers the assets to be securitized to the issuer in a so-called "true sale" (see Practice Note, Securitization: The SPV: Avoiding Recharacterization of the Transfer: True Sale).

The originator may be the parent of the issuer, establishing the issuer for purposes of the transaction, in which case an affiliated arranger usually structures the transaction. In the alternative, in a so-called "multi-seller conduit" securitization, the issuer acquires loans from more than one originator, such as in RMBS transactions with asset pools composed of many loans (see Practice Note, Securitization: US Overview: Multi-Seller Conduits ("Two-Step" Securitizations)).

For more details on the originator in a securitization transaction, see Practice Note, Securitization: US Transaction Parties and Documents: The Originator.