In a mortgage loan transaction, who is referred to as the mortgagee?

In a mortgage loan transaction, the mortgagee is defined as the lender who provides the funds for the loan. This term refers specifically to the party that extends credit and holds the mortgage as security for the loan. The mortgagee has the right to foreclose on the property if the borrower defaults on the loan, thus emphasizing its role as the entity that seeks to protect its financial interest in the property.

In contrast, the borrower is often referred to as the mortgagor, as this party is the one who receives the loan and pledges the property as collateral. Loan originators assist in facilitating the mortgage process but do not hold the mortgage themselves. Real estate agents are involved in property transactions but do not typically play a direct role in the lending or borrowing aspects of a mortgage loan. Therefore, identifying the mortgagee as the lender clarifies the responsibilities and rights within the context of mortgage agreements.