Real estate title glossary

What is assignment of mortgage?

Definition

An assignment of mortgage is a recorded document transferring a mortgage from one lender to another; the assignee becomes the holder entitled to payment and to release the loan.

Loans are sold often, and some assignments are never recorded because the loan sits in MERS. A gap in assignments can make it unclear who must sign the release when the loan is paid.

How it shows up in a title search

A search follows each open mortgage's assignments to the current holder; a satisfaction signed by a company that is not in the assignment chain is a red flag.

Guides that go deeper

Source: Legal Information Institute, Wex: assignment. Plain-English summary of general US usage; state law varies, and this is not legal advice.