Which parties in a mortgage transaction typically have no long-term financial interest in the loan's performance?

In a mortgage transaction, the parties that typically have no long-term financial interest in the loan's performance are the mortgage broker and the mortgage loan originator. The mortgage broker acts as an intermediary between the borrower and the lender, facilitating the loan process but generally does not retain any ownership or long-term stake in the loan once it is closed. Their primary role is to help borrowers find suitable loans and get them approved.

Similarly, the mortgage loan originator is responsible for guiding the borrower through the application and approval process but usually does not hold the loan or face long-term risks associated with its performance. Their compensation is typically derived from fees or commissions at the time of closing, not from the loan's long-term performance, meaning they are primarily focused on completing the transaction rather than its ongoing success.

In contrast, the borrower has a vested interest in the loan since they are responsible for repayment, and the lender maintains a financial interest in the loan's performance as they are at risk of losing money if the borrower defaults. The dynamic with the borrower and lender entails long-term financial implications that influence their actions and decisions related to the loan.