What does a satisfaction of mortgage require from the mortgagee?

A satisfaction of mortgage is a crucial step in the mortgage process that occurs once the borrower has fully repaid the mortgage loan. The role of the mortgagee, or lender, in this process involves officially acknowledging that the debt has been satisfied.

When a mortgage is satisfied, the mortgagee is required to cancel the mortgage and provide the borrower with a recorded satisfaction. This document serves as evidence that the loan has been paid off and removes the lender's claim to the property. It is important for the borrower to receive this documentation as it signifies that they own the property free and clear of any liens related to that mortgage.

In this context, the other choices do not accurately reflect the requirements for satisfaction of a mortgage. Paying the remaining balance or providing a new loan would not pertain to the satisfaction process, while obtaining signatures on a new agreement is unnecessary once the mortgage is fulfilled. Hence, the correct action for the mortgagee is to formally cancel the mortgage and issue a satisfaction document.