Who is referred to as the mortgagee in a mortgage loan transaction?

In a mortgage loan transaction, the mortgagee is defined as the lender. This party provides the funds necessary for the borrower to purchase a home and holds the mortgage as security for the loan. In essence, the mortgagee has a legal interest in the property until the borrower repays the loan in full. This relationship is critical because it ensures that the lender can recover the debt by claiming the property if the borrower defaults on the loan.

The borrower, often referred to as the mortgagor, is the individual who receives the loan and is responsible for making payments to the lender. While they play an essential role in the transaction, they do not hold the mortgage. The insurance provider and the appraiser are separate entities involved in the real estate transaction but do not have the rights and obligations associated with being a lender. The insurance provider typically offers insurance products related to the property, while the appraiser assesses the value of the property for determining the loan amount. Understanding these roles is crucial when navigating mortgage loans and real estate transactions.