Mortgagee
National Real Estate Exam glossary · Financing
Definition
The lender in a mortgage transaction—the party who receives the mortgage as security and holds the right to foreclose. A reliable way to keep the pair straight: the mortgagor is the borrower; the mortgagee is the lender.
Mortgagee in plain English
The mortgagee is the lender — the bank or party that hands over the money and, in return, holds the right to foreclose if the loan isn't paid. The tricky part is the near-identical spelling with 'mortgagor,' so here's a trick that always works: the '-ee' one RECEIVES the security and is owed the money (the lender), while the '-or' is the borrower. Same pattern as 'employer/employee' — the '-ee' is on the receiving end.
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