Who is a mortgage note holder?

A mortgage note holder is the owner of the loan.

The note holder enforces the loan agreement.

The holder of the note is the entity that collects the debt and takes legal action (foreclosure) if the borrower doesn't make payments.

Lender vs Note Holder

The lender might not necessarily be the note holder

The entity that lends money is a lender. The lender might not have the actual funds to lend.

The lender could be the party to whom the borrower owes the money (at least at the beginning).

In other words the lender is the entity that makes the funds available to the borrower.

Most mortgage lenders do not keep their loans. Instead, lenders sell their loans to banks or servicing companies.

The entity that “holds” the Mortgage note (promissory note) is entitled to enforce the loan agreement (as stated in the note). The Note-holder is the party that you usually, but not necessarily, owe the money to.