finance
mortgagee
The mortgagee is the lender in a mortgage loan, the party that receives the mortgage as security for repayment of the debt. The borrower, who gives the mortgage, is the mortgagor. The mortgagee holds a lien on the property and, if the borrower defaults, may pursue foreclosure. Upon full repayment, the mortgagee must provide a satisfaction or release of the mortgage.
- Exam tip
- The borrower gives the mortgage (mortgagor) and the lender receives it (mortgagee). Many students reverse these; remember the borrower gives the pledge, the lender receives it.
- Example
- A couple borrows $320,000 from a bank to buy a home. The bank is the mortgagee and the couple are the mortgagors.
Related terms & state variants
Sources
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Last verified: 2026-10-23