Who is referred to as the Mortgagee?

In a mortgage agreement, the mortgagee is the lender, which is typically a bank or financial institution that provides the funds for the borrower to purchase real estate. The mortgagee holds the security interest in the property, meaning they have a legal claim to the property until the borrower repays the loan in full. This relationship establishes the mortgagee as the entity that oversees the loan terms and has the right to foreclose on the property if the borrower defaults on the loan.

Understanding the role of the mortgagee is crucial for grasping how real estate financing works, as they are the ones who originate the loan and manage the lending process, ensuring compliance with both state and federal regulations. This designation differentiates them from other parties involved in real estate transactions, such as the borrower, who is seeking financing, or real estate agents and title companies, who facilitate the sale but do not directly participate in the lending process.