What is the document called that the lender issues upon full repayment of a mortgage loan?

The document that the lender issues upon full repayment of a mortgage loan is known as a Satisfaction of Mortgage. This document serves as a formal recognition that the mortgage obligation has been fulfilled, meaning the borrower has paid off the loan in full. The Satisfaction of Mortgage acts as proof to both the borrower and future purchasers of the property that the lender no longer claims a lien on it.

The issuance of this document is significant because it not only clears the borrower's title but also updates the public records to reflect that the mortgage has been satisfied. This helps prevent any future disputes over ownership and ensures that the borrower has regained full ownership rights without any encumbrances from the previous loan.

Other choices refer to related documentation but do not specifically denote the completion of the mortgage repayment. A Title Policy typically involves title insurance used during the mortgage closing process, while a Mortgage Release refers more generally to the process of releasing the lien but is not the specific term for the document itself. A Loan Closure Document might refer to various closing paperwork but does not denote the satisfaction of the mortgage loan specifically.