Mortgagee literally means an entity, could be a bank or a loaning company, that shows support by lending the borrower a certain amount to purchase a piece of real property that could mean a house or any piece of private property.
Upon accepting the mortgage (a legal agreement by bank and another creditor that loans money at interest in exchange for the title of the borrower’s property) on that piece of real property, the lender ensures the security of a full payment of the loan provided.
To fully understand the meaning of mortgagee, the example of it is by people taking out a mortgage in order to obtain a certain amount to purchase a piece of property that is usually a house or any real estate. To avoid risky investments during this process, the lender then creates a sense of priority in legal interest concerning the value of the property bought, substantially decreasing the possibility of not being able to be repaid in full if ever the borrower backs out on the loan.
Basically, in the exchange, the mortgagee has the rights for the piece of property bought by the borrower and is held throughout the whole duration of the loan and shall only be turned over once the loan is fully paid.