It is a common mistake to confuse the terms ‘mortgagee’ and ‘mortgagor’. The correct definitions are:
A mortgagee is the Lender in a mortgage agreement. They give the loan but receive the mortgage document that is registered on title.
A mortgagor is the Borrower in a mortgage agreement. He or she receives the loan but gives the mortgage document that is registered on title.
Most lay people assume that the mortgagee is the person, corporation or entity that will be receiving the proceeds of the mortgage. This misunderstanding arises because these terms were coined by lawyers who are not tracking the direction of the funds (which to most of us is the key in any deal). Instead, they are tracking the direction of the mortgage document.
The Borrower (mortgagor) is giving the mortgage document to the Lender and the Lender (mortgagee) is receiving it… So the terms only make sense if you think like a lawyer!
Prof Bruce