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

In a mortgage transaction, the term "mortgagee" refers specifically to the lender. The lender is the entity that provides the funds to the borrower (the mortgagor) in exchange for a security interest in the property being purchased. This means that the lender has the legal right to seek repayment through the property itself if the borrower fails to fulfill their obligations under the mortgage agreement.

Understanding the roles in a mortgage transaction is crucial. The borrower, or mortgagor, takes out the loan to buy a property, while the lender, as the mortgagee, holds the mortgage until the loan is fully paid off. The title company is typically involved in the transaction to ensure that the title to the property is clear and that the mortgage is properly recorded, but they do not hold the mortgage. The appraiser, a different party altogether, is engaged to assess the property's value but does not play a direct role in the lending process itself.

Thus, identifying the lender as the mortgagee is key to grasping the foundational elements of real estate finance.