What is assignment of mortgage?

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The assignment of mortgage is a legal process that involves the transfer of a mortgage from one party to another. This article will delve into the details of what assignment of mortgage entails, including the parties involved, the reasons for assignment, and the legal implications.

Understanding Assignment of Mortgage

Definition: Assignment of mortgage refers to the transfer of an existing mortgage from the original lender (assignor) to another party (assignee). This transfer typically occurs when the original lender sells the mortgage to a different entity or when the mortgage is transferred as part of a loan restructuring or refinancing.

Parties Involved: The key parties involved in the assignment of mortgage are the assignor, assignee, and the borrower. The assignor is the original lender who is transferring the mortgage, while the assignee is the new party who will assume the rights and obligations of the mortgage. The borrower is the individual or entity who originally obtained the mortgage loan.

Reasons for Assignment: There are several reasons why a mortgage may be assigned. One common reason is when a lender sells a mortgage to another financial institution. This can occur when the original lender needs to raise capital or wants to reduce its mortgage portfolio. Additionally, assignment of mortgage may occur when a borrower refinances their loan with a different lender, resulting in the original mortgage being assigned to the new lender.

Legal Implications: The assignment of mortgage has legal implications for all parties involved. When a mortgage is assigned, the assignee assumes all the rights and responsibilities of the original lender. This includes the right to collect mortgage payments, enforce the terms of the mortgage, and foreclose on the property in the event of default. The borrower’s obligations under the mortgage remain unchanged, but they will make payments to the new assignee instead of the original lender.

Process of Assignment of Mortgage

Documentation: The assignment of mortgage is typically documented through a written agreement or assignment of mortgage form. This document outlines the terms of the assignment and is signed by both the assignor and assignee. It is important for this document to be properly executed and recorded to ensure the transfer is legally valid.

Recording: In many jurisdictions, the assignment of mortgage must be recorded with the appropriate government office, such as the county recorder’s office. Recording the assignment provides public notice of the transfer and protects the assignee’s rights in the mortgage. Failure to record the assignment could result in the assignee losing priority over other creditors or subsequent purchasers of the property.

Notification to Borrower: Once the assignment of mortgage is complete, the assignee is responsible for notifying the borrower of the transfer. This notification typically includes information about where mortgage payments should be sent and any other changes in terms or contact information. It is important for the borrower to be aware of the assignment to ensure that payments are made to the correct party.


In conclusion, the assignment of mortgage is a legal process that involves the transfer of a mortgage from one party to another. It occurs for various reasons, including the sale of mortgages by lenders and borrower refinancing. The assignment of mortgage has legal implications for all parties involved and requires proper documentation, recording, and notification to the borrower.


– Investopedia: www.investopedia.com
– LegalMatch: www.legalmatch.com
– The Balance: www.thebalance.com