What does a lender refer to in mortgage context?

In the context of mortgages, a lender refers to individuals or institutions that provide the funds necessary for borrowers to purchase or refinance real estate. Lenders can include banks, credit unions, mortgage companies, and other financial institutions that have the ability to issue loans. This definition is central to understanding how mortgage transactions occur since lenders are responsible for evaluating borrowers' creditworthiness, determining loan terms, and disbursing the funds.

The other choices do not align with the definition of a lender. A government body that regulates loans focuses on oversight and regulatory compliance rather than directly providing funds. A person seeking a mortgage loan is known as a borrower, not a lender. Real estate agents typically assist clients in navigating the real estate market and may help connect them with lenders, but they do not provide loan funds themselves. This distinction is crucial in the mortgage process, as understanding the roles of each party involved leads to a more comprehensive grasp of how mortgages function within the financial system.