In a mortgage transaction, who is known as the mortgagee?

In the context of a mortgage transaction, the mortgagee is defined as the lender. This is the party that provides the funds to the borrower (the mortgagor) for the purpose of purchasing the property. The lender holds the mortgage as security for the loan, which means that if the borrower fails to repay the loan, the lender has the right to foreclose on the property to recover the outstanding debt.

Understanding this terminology is vital because it also clarifies the roles involved in a mortgage transaction. The lender is not only responsible for providing financial support but also for assessing the borrower's creditworthiness and determining the terms of the loan. Other parties, such as property managers or real estate agents, have different roles that do not pertain to the lender-borrower dynamic. The title insurance company, while also a crucial component of real estate transactions, primarily protects against potential future claims or losses that may arise concerning ownership of the property, further distinguishing its role from that of the lender.