Nevada Timeshare License Practice Exam

In a mortgage agreement, the term used to describe the lender is "mortgagee." The mortgagee is the party that provides the funds to the borrower, allowing them to purchase property. This party holds the security interest in the property until the loan is repaid in full by the borrower. Understanding this role is crucial, as it defines the relationship between the lender and the borrower, where the lender has a claim to the property if the borrower defaults on the loan. The borrower refers to the individual or entity that receives the loan and is responsible for repaying it, rather than the lender. The guarantor is someone who agrees to be responsible for the loan obligations if the borrower defaults, but they are not the primary lender. The trustee, in some mortgage agreements, may refer to an independent third party holding the legal title to the property for the benefit of both the borrower and mortgagee, but they are not the lender either. Thus, "mortgagee" specifically identifies the lender within the mortgage context.