Parkway Insurance group, inc.
What is a Mortgagee Clause?
When applying for a mortgage, you may discover that you are unfamiliar with some terminology and parts of the contract. Because most people aren’t familiar with the language used in legal contracts, some initial uncertainty is to be expected. However, you should understand as much as possible about your contract before signing it. Mortgage lenders (also known as mortgagees) put in place specific measures during the contracting process to ensure that the collateral for their investment – your new home – is protected. The mortgagee clause is one such measure. Let’s take a closer look at what it is and how it may affect you and your lender. A mortgagee…