Definition

Noun: - The lender in a mortgage agreement: The party, typically a bank or financial institution, that lends money to a borrower (the mortgagor) and accepts a legal claim (the mortgage) on the borrower's property as security for the loan.

Usage

The term "mortgagee" is used in legal and financial contexts to identify the entity that holds the security interest in a property. It is the party to whom the debt is owed.

Examples

• The mortgagee has the right to foreclose on the property if the borrower defaults on the loan payments.
• In the contract, the bank is clearly identified as the mortgagee.
• The mortgagee's primary concern is the timely repayment of the loan principal and interest.

Advanced Usage

• "Mortgagee in possession": A legal status where the mortgagee (lender) has taken control of the mortgaged property, typically after a default, and is responsible for managing it.
  • After the foreclosure, the bank operated as a mortgagee in possession of the apartment building.

Variants and Related Words

• Mortgagor (noun): The borrower who grants the mortgage to the lender (the mortgagee). This is the counterpart to the mortgagee.
  • The mortgagor must make monthly payments to the mortgagee.
• Mortgage (noun/verb): The loan agreement itself or the act of pledging property as security.
  • They took out a mortgage from a reputable mortgagee.

Synonyms

• Lender: The general term for an entity that provides a loan.
• Creditor: A person or company to whom money is owed.
• Secured party: A party that has a security interest in collateral (like a mortgagee has in a property).

Related Phrases

• "For the benefit of the mortgagee": A phrase used in insurance or legal documents indicating that a policy or clause is designed to protect the lender's financial interest.
  • The property insurance policy was written for the benefit of the mortgagee.

Noun

1. the person who accepts a mortgage
   • the bank became our mortgagee when it accepted our mortgage on our new home