Direct answer
What does Lender mean?
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?
New York 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 person or entity that receives or seeks credit and promises repayment under the loan terms.Mortgage bankerA 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 person or entity that solicits, processes, places or negotiates mortgage loans for others rather than acting as the funding lender in the ordinary broker role.Mortgage loan originatorAn individual who, for compensation or expected gain, takes a residential mortgage application or offers or negotiates residential mortgage terms, subject to statutory exceptions.Referral feeCompensation paid for directing business or a customer to another provider.Table fundingA closing arrangement in which a loan is funded by an advance from another person and assigned at or around settlement, as defined by applicable lending rules.
Sources used2 references with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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