The bank, credit union, or mortgage company that loans you the money to buy a home. They set the interest rate, approve the loan, and hold the lien until it's paid off.
The lender is whoever is putting up the money for your mortgage. That can be a national bank, a credit union, a direct mortgage lender like Benchmark, or an online-only lender. Some sell the loans on the secondary market after closing; some hold them on their own books.
The lender decides whether to approve you, what rate to offer, and what conditions you have to meet. They also handle the underwriting, the appraisal, the closing disclosure, and the loan servicing (collecting your monthly payments). Sometimes one company does all of that; sometimes the loan gets sold to a different servicer after closing.
Example
Benchmark Mortgage originates your loan, runs the underwriting, and closes it. After closing, Benchmark may sell your loan to a different servicer who will collect your payments. Your loan terms don't change when this happens.
Also known as
mortgage lender, mortgage company, bank