closed mortgage

Unlike in other types of lending, loan originators earn more profit from origination fees rather than interest rate spread since the closed mortgage loan is sold quickly to an investor.

The Independent described the entity sold as the "detoxified arm" of the bank, while saying the taxpayers retained "responsibility for £20bn of toxic assets such as bad debts and closed mortgages. "

A service release premium (SRP) is the payment received by a lending institution, such as a bank or retail mortgage lender, on the sale of a closed mortgage loan to the secondary mortgage market.