Direct answer
What does lender mean?
A lender is a person or entity that extends credit and is entitled to repayment under the loan agreement.
Exam cue: Identify whether the party funds the loan, services it or merely arranges it.
What does it look like in a question?
Example
A bank provides the mortgage funds and receives the note.
Common exam trap
What should you not confuse it with?
A mortgage broker is not the lender merely because the broker helped obtain the loan.
Related mortgage brokerage terms
BorrowerA borrower is a person or entity that receives or seeks credit and promises repayment under the loan terms.Mortgage bankerA mortgage banker is a person or entity in the business of making mortgage loans with its own funds or a credit line, subject to applicable licensing or exemption rules.Mortgage brokerA mortgage broker is a person or entity registered in New York to solicit, process, place or negotiate mortgage loans for others, without funding the loans itself.Mortgage loan originatorA mortgage loan originator (MLO) is an individual who, for pay or expected gain, takes residential mortgage applications or offers or negotiates residential mortgage terms.Referral feeA referral fee is compensation paid for directing business or a customer to another provider.Table fundingTable funding is a closing in which a loan is made in one party's name but funded at settlement by another lender's advance and assigned to that lender.
Sources used2 references with section locators
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