What Does Holding a Mortgage Mean?

If there is a mortgage on this home, it is held by a lender.

The bank or lending institution that gives a borrower the funds to purchase a home or to refinance his mortgage debt is the holder of the mortgage. To hold a mortgage means to accept or own the debt on the property.

Significance

The holder of a borrower's mortgage is a very important part of the home. If the borrower is unable to pay, the holder may foreclose on the property and take over ownership.

Function

The mortgage holder is the company that accepts the debt on the residence. The entity may or may not service the loan itself. It also may sell the loan to a third party after originating it. In fact, a loan may be sold several times over its life.

Types

The mortgage holder may be a bank, or it could be a private person, depending on who lent the borrower the funds. The mortgage holder and mortgage servicer may not be the same entity. While one may own the debt, the other may accept and process the debt payments.

References

• The Free Dictionary: Mortgage Holder
• Federal Reserve Bank of Boston: Know Before You Go ... to Get a Mortgage