What is a Mortgagee?

Mortgagee Definition

A mortgagee is a lender who provides money to the owner of real estate and who takes security or a lien in real estate as assurance for repayment of the loan.

Often, the mortgagee is referred to as the mortgage lender while the borrower is referred to as the mortgagor.


The Bank loans $200,000 to Mr. McGillicuddy for the purchase of a home. The Bank provides a mortgage, or a lien, on the home. The Bank is called the mortgagee and Mr. McGillicuddy is called the mortgagor in the transaction.

In the written mortgage, the lender may be called the mortgagee. In the note, bank or financial institution may be referred to as the lender. Since the mortgage is the document that provides the lien in real estate for the money borrowed, the term mortgagee is often used.

Just as you will be a buyer, owner, borrower and mortgagor, depending on the context of the loan document, the financial institution may be the lender, bank, or mortgagee. Different terms are used to describe roles or functions of the entity.

The term mortgagee is a term used in the real estate banking industry to describe a form of lender. A credit card lender will not be a mortgagee because they do not hold a security through the real estate owned by you. A bank who loans money for the purchase of a car will not be a mortgagee, even if they take security in a car, because they also do not have a lien on your real estate.

At First Foundation, we are fully familiar with the different technical terms used in mortgage transactions. It is our job to explain the complexities of the process in terms our customers can understand. We will review the process with our customers and counsel them on terms and conditions with which they might not be familiar.

Related Terms

If you are interested in learning more about a mortgagee, please feel free to contact us today!

Last updated Feb 11, 2019