Finance
In Illinois, a mortgage is used to pledge real property as collateral for a loan. Who holds the mortgage in a typical Illinois residential transaction?
AThe borrower (mortgagor) holds the mortgage
BThe lender (mortgagee) holds the mortgage as security for the loan✓ Correct
CThe title company holds the mortgage until closing
DThe county recorder holds the original mortgage
Explanation
In a mortgage, the borrower (mortgagor) pledges the property as collateral, and the lender (mortgagee) holds the mortgage as security. The borrower retains title to the property in most states (lien theory states like Illinois), unlike trust deed states where a trustee holds title.
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