Definition for : Mortgage loan

A "Mortgage Loan" is a type of loan secured by a mortgage on some real estate Assets. The mortgage is granted by the "Mortgagor" (the borrower) to the benefit of the "Mortgagee" (the secured lender). Residential mortgage loans are granted to individuals and secured by residential properties, while commercial mortgage loans are mostly granted to companies and are secured by commercial properties. Mortgage loans are frequently securitized by the banks, building societies (in the UK) and other specialized institutions (such as Fannie Mae and Sallie Mae in the US, or Credit Lodgement in France) having granted them. Depending on the nature of the real estate Collateral, the resulting securities are called Residential Mortgage-Backed Securities (RMBS) or Commercial Mortgage-Backed Securities (CMBS).

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