In a mortgage transaction, who is the mortgagee?

• A. The borrower
• B. The lender
• C. The broker
• D. The owner

Answer: (B)

The mortgagee is the lender—the party who provides the loan and holds the lien on the property as security for repayment. In a mortgage, the borrower signs an agreement promising to repay the money, and the lender records a security interest in the property (a lien). If the borrower fails to repay, the lender has the right to enforce the loan, including foreclosure, to recover the debt. The owner is simply who holds title to the property, which could be the borrower but is not the mortgagee. A broker facilitates the loan but does not hold the mortgage lien.