A mortgagor is the party that takes out the mortgage. The mortgagor is typically an individual or a business that borrows money from a mortgagee to purchase a property.
The mortgagor has a number of obligations under the mortgage, including:
- The obligation to make the mortgage payments on time.
- The obligation to keep the mortgaged property in good condition.
- The obligation to notify the mortgagee if there is any change in the mortgagor's circumstances, such as a change in employment or a change in the mortgagor's address.
The mortgagor also has a number of rights under the mortgage, including:
- The right to redeem the mortgage by paying off the mortgage debt in full.
- The right to sell the mortgaged property, subject to the mortgagee's consent.
- The right to be compensated by the mortgagee for any losses that the mortgagor suffers as a result of a breach of the mortgage by the mortgagee.
In the context of securitisation, the mortgagor is typically not involved in the securitisation process. The mortgagee will sell the mortgages to a special purpose vehicle (SPV), and the SPV will then issue securities to investors.
The applications of the mortgagor in the context of securitisation include:
- Obtaining a mortgage: The mortgagor will obtain a mortgage from a mortgagee to purchase a property. This will allow the mortgagor to borrow money to finance the purchase of the property.
- Making mortgage payments: The mortgagor will be responsible for making the mortgage payments on time. This is important to ensure that the mortgage is not in default.
- Protecting the mortgagor's interests: The mortgagor's interests are protected by the terms of the mortgage. These terms will typically include provisions that set out the mortgagor's obligations and rights.
Overall, the mortgagor is an important party in the securitisation process. They are responsible for obtaining a mortgage, making mortgage payments, and protecting their interests.