What Is a Mortgagee in Real Estate?
A mortgagee is the lender in a real estate transaction. This is the bank, credit union, or mortgage company that issues the loan and holds a lien on the property until the borrower pays it off.
📌 Mortgagee Definition
The mortgagee is the entity that:
- issues the mortgage loan
- secures its interest with a lien against the property
- collects monthly payments from the mortgagor
- has the right to foreclose if the borrower defaults
🔎 What the Mortgagee Does
- Evaluates the borrower’s credit, income, and assets
- Sets underwriting requirements
- Orders the appraisal
- Issues the Loan Estimate and Closing Disclosure (CD)
- Collects escrow payments for taxes & insurance
- Enforces the mortgage terms
🆚 Mortgagee vs. Mortgagor
| Term | Definition |
|---|---|
| Mortgagee | The lender that provides financing and holds the lien. |
| Mortgagor | The borrower who gives the mortgagee a security interest. |
See also: What Is a Mortgagor?