During the loan process, the entity that provides funds to the borrower is called the?

During the loan process, the entity that provides funds to the borrower is called the?

• A. Mortgagor
• B. Mortgagee
• C. Debtor
• D. Lienholder

Answer: (B)

The main idea is identifying who funds the loan in a real estate transaction. The entity that provides the loaned money to the borrower is the mortgagee—the lender who extends the funds and holds the mortgage to secure repayment. The person who borrows and signs the note is the mortgagor. A debtor is a generic term for someone who owes money, not specific to real estate loans. A lienholder is anyone who has a lien on the property, which can include the mortgagee, but the term is broader and doesn’t by itself specify who provides the funds. So the term that best fits “provides funds to the borrower” is mortgagee.

The main idea is identifying who funds the loan in a real estate transaction. The entity that provides the loaned money to the borrower is the mortgagee—the lender who extends the funds and holds the mortgage to secure repayment. The person who borrows and signs the note is the mortgagor. A debtor is a generic term for someone who owes money, not specific to real estate loans. A lienholder is anyone who has a lien on the property, which can include the mortgagee, but the term is broader and doesn’t by itself specify who provides the funds. So the term that best fits “provides funds to the borrower” is mortgagee.