Assignment of Mortgage

Assignment of mortgage is a legal document that is used to assign the security interest in real property. Beneficiary/lender/financial institution lends certain loan amount to a borrower and keeps some collateral for security purpose this is where a mortgage starts. But a small lender can not hold those collateral's for very long period of time. At one point of time this small lender should approach a bigger lender to assign those collateral's and get money for the continuity of the business. This is the reason why the lenders follow the rules and guidelines set by big financial institutions like Fannie Mae and Freddie Mac at the time of issuing a loan. In doing so, there will not be any problem when the lender assigns documents to above mentioned banks. When big lenders purchase the mortgages they follow the pooling system (creamed loans as per the good selection).

So when ever there is an assignment of mortgage, it has to be recorded at the local county office in the public records to change the lien holder on an existing debt. Unrecorded documents are not considered and accepted as the valid transfer of assignment. This document includes some important information like assignor and assignee apart from the mortgage recording details in the body of the document. The assignor is the party who assigns or transfers the mortgage and the assignee is the party to whom the mortgage is assigned. A mortgage date is written at the bottom of the document and lastly the signature of the borrower at the bottom right hand. Some times the document contains the history of assignments till the final assignment, assignors and assignees and the recordings of those documents.