Who is defined as the lender in a mortgage agreement?

In a mortgage agreement, the lender is defined as the mortgagee. This term refers to the entity or individual that gives the funds to the borrower (the mortgagor) in exchange for the security provided by the property being mortgaged. The mortgagee holds a lien on the property and has the right to collect payments and, in the event of default, to foreclose on the property to recover the loan amount.

Understanding the roles in a mortgage agreement is critical. The mortgagor is the borrower who is mortgaging their property to secure the loan, while the mortgagee is the institution or individual providing that loan. An assignee refers to someone who takes over the rights and obligations of a contract, which is a different relationship entirely. The borrower is simply a layman's term for the party receiving the loan, but in the legal language of the mortgage agreement, they are referred to as the mortgagor. Thus, identifying the mortgagee is crucial for grasping how the loan structure operates in real estate transactions.