An individual or entity (such as a bank) that provides a loan that is secured by a mortgage against real property, also known as a lender. The owner of the property granting the mortgage is the mortgagor.

A mortgage creates a lien on the mortgaged property but gives no legal title to the mortgagee. The mortgage typically gives the mortgagee the right to foreclose the mortgage in the event of a default of the loan obligations.

Some states require that a foreign (out-of-state) lender be licensed or obtain approval before it can make a loan secured by real property in that particular state or commence a foreclosure proceeding. For information on the licensing or approval requirements of foreign lenders in a particular state, see Real Estate Finance: State Q&A Tool: Question 16.