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Assignment of Mortgage

The document that transfers the Mortgage from one lender to another — a critical link in the chain of title that must be properly executed and recorded.

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Assignments & Transfers

An Assignment of Mortgage (or Assignment of Deed of Trust) is the legal document that transfers a mortgage from the current holder (assignor) to a new holder (assignee). When mortgage loans are sold — which happens frequently in the secondary mortgage market — the Mortgage must be assigned each time to reflect the current owner of the loan in the public land records. The Assignment is recorded in the county land records where the property is located. In the era of mortgage securitization, a single loan might be assigned multiple times: from the originating lender to a wholesaler, to a securitization trust, and potentially through various servicers. Each assignment must be properly executed and recorded. Defects in assignments — robo-signed, backdated, forged, or missing assignments — are a primary focus of foreclosure defense standing challenges.

Purpose

  • 1Transfer the security interest (the Mortgage) from one entity to another in the public land records
  • 2Maintain a clear chain of title showing who holds the mortgage at each point in time
  • 3Provide public notice of the current mortgage holder for purposes of payoff, modification, and foreclosure
  • 4Establish the foreclosing party's standing — they must show an unbroken chain of assignments from the original lender to themselves

Who Prepares It

The assignor or assignee (typically the assignee's attorney or document vendor) prepares the Assignment. In the securitization era, assignments are frequently prepared by mortgage document processing companies (like Lender Processing Services / LPS) and signed by 'robo-signers' — employees who signed thousands of documents without reviewing them. Robo-signed assignments are a key focus of foreclosure defense.

When It Is Used

Executed each time the mortgage loan is transferred. In the securitization chain, there may be 3-5+ assignments: originating lender → wholesaler → depositor → securitization trust. Assignments should be executed contemporaneously with the transfer, though in practice they are often prepared years later when foreclosure is initiated ('corrective' or 'confirmatory' assignments).

Legal Effect

A properly executed and recorded Assignment transfers the mortgagee's rights under the Mortgage to the assignee. The assignee steps into the shoes of the original lender and can enforce the Mortgage, including through foreclosure. An unrecorded Assignment may be valid between the parties but does not provide constructive notice to the world. A defective Assignment (forged, robo-signed, executed without authority, backdated) may be void or voidable and can destroy the foreclosing party's standing.

Common Mistakes

Assuming a robo-signed Assignment is automatically invalid — courts split on this; some accept robo-signed assignments as valid if the signer had authority; others void them
Overlooking Assignment chain breaks — if there is a gap in the chain (a missing assignment), the foreclosing party may lack standing
Failing to check county recording requirements — each county has specific formatting, notarization, and fee requirements for recording Assignments
Not distinguishing between an Assignment executed by MERS (Mortgage Electronic Registration Systems) as nominee vs. a direct corporate assignment — MERS assignments have specific legal issues

Homeowner Rights

Right to inspect every Assignment in the chain of title at the county recorder's office
Right to demand proof of the signer's authority — was the person who signed the Assignment actually authorized by the assigning entity?
Right to challenge the validity of an Assignment in court — a void Assignment breaks the chain of title
Right to demand a copy of the corporate resolution or power of attorney authorizing the signer to execute Assignments

Frequently Asked Questions

What is a robo-signed Assignment and what does it mean for my case?

Robo-signing refers to the practice of having employees sign thousands of mortgage documents (Assignments, Affidavits) without reading or verifying them, often signing in names other than their own, with titles that didn't match their actual position. A robo-signed Assignment may be void if the signer lacked authority — an unauthorized signature cannot transfer the mortgage. However, courts are divided: some void robo-signed assignments; others hold that the signer had apparent authority. A robo-signed Assignment is a strong basis for challenging standing, but it is not an automatic win.

What if there's a gap in the chain of Assignments?

A gap — a transfer with no recorded Assignment — may indicate that the foreclosing party cannot prove ownership. If the Assignment from A to C is recorded, but there was an intermediate transfer from A to B to C with no recorded Assignment from B to C, the chain is broken. The foreclosing party must explain the gap. This is a powerful standing challenge. However, the foreclosing party may argue that possession of the Note (endorsed in blank) is sufficient regardless of Assignment gaps — the Note and Mortgage are separate legal rights.

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