What is true about the mortgagor and mortgagee?

The statement that a mortgagee is also referred to as the investor is accurate. In the context of mortgage terminology, the mortgagee is the entity that lends money to the mortgagor (the borrower or property owner) for the purchase of real estate. The mortgagee holds the secured interest in the property until the loan is fully repaid. Since the mortgagee usually invests their own funds or those of the institution they represent, referring to the mortgagee as an investor aligns with their role in the transaction. This understanding is fundamental in real estate finance, as it clarifies how the relationship between the borrower and lender operates.

While the other options mention roles or actions associated with mortgages, they either misidentify or misconstrue the responsibilities and definitions of the mortgagor and mortgagee. For instance, it’s actually the mortgagor who signs the mortgage and note, and it is incorrect to suggest that only property owners can be mortgagees, as they are specifically the lenders. The concept of a yield spread premium (YSP) being received by a mortgage loan originator from a mortgagee more directly pertains to compensation structures rather than clarifying the roles of mortgagors and mortgagees.