Mortgagee — a mortgagee is a financial institution that is the lender in a mortgage,
holding a financial interest in the property. Such an institution loans money
to the borrower, who is known as the mortgagor. To limit its risk, a mortgagee
creates a priority legal interest in the mortgaged property's value,
allowing it to seize such property if the mortgagor defaults on the mortgage.
Insurance policies that provide coverage on buildings—homeowners insurance
policies and commercial property insurance policies, for example—typically
include a mortgage or mortgageholders provision addressing the rights of a
mortgagee that is named in the policy with respect to the coverage on the
building in which the mortagee has a legal interest.