Who is typically the lender in a mortgage transaction?

In a mortgage transaction, the lender is referred to as the mortgagee. This party is typically a financial institution, such as a bank or credit union, that provides the funds to the borrower (the mortgagor) to purchase real estate. The mortgagee holds the mortgage as security for the loan, allowing them to claim the property if the borrower fails to repay the loan according to the agreed-upon terms.

Understanding the role of the mortgagee is crucial in real estate transactions, as they not only provide the financing but also have a vested interest in ensuring that the mortgage terms are met. This concept is foundational in real estate, helping to clarify the responsibilities and rights of each party involved in the mortgage process.