Mortgage assignments transfer the security instrument between lenders. Defective or missing assignments break the chain of title and destroy standing to foreclose. Learn how to identify assignment defects, challenge MERS assignments, and use assignment issues in foreclosure defense.
Get Free Case ReviewA mortgage assignment is a legal document that transfers the mortgage (or deed of trust) — the security instrument — from one entity to another. When the original lender sells your loan, they execute an assignment transferring the mortgage to the new owner. Each time the loan changes hands, a new assignment should be executed and, in most states, recorded in the county land records. The assignment is the documentary link connecting the current foreclosing entity back to the original lender. If any link in this chain is missing, defective, or fraudulent, the foreclosing entity may lack standing — a complete defense to foreclosure.
This distinction is fundamental to foreclosure standing. The promissory note (the IOU) is a negotiable instrument governed by UCC Article 3. It is transferred by endorsement or delivery. The mortgage (the security interest in the property) follows the note — "the mortgage follows the note" is a foundational legal principle. However, the mortgage assignment must still be properly executed and recorded to establish standing in foreclosure. A common lender mistake: the note was properly transferred but no assignment of mortgage was recorded. The foreclosing entity must prove (1) it holds the note AND (2) the mortgage was properly assigned to it. A gap in either defeats standing.
| Instrument | Governed By | Transferred By | Must Be Recorded? |
|---|---|---|---|
| Promissory Note | UCC Article 3 | Endorsement or delivery (possession) | No — notes are not recorded |
| Mortgage / Deed of Trust | State property law | Written assignment signed by assignor | Yes — must be recorded for constructive notice |
Assignments signed by known robo-signers without personal knowledge or proper corporate authority. See: Robo-Signing Guide.
Assignments executed after foreclosure was filed, purporting to be effective on an earlier date. An entity cannot retroactively create standing it lacked at filing.
If the assignor (the entity transferring the mortgage) had already transferred it to someone else, it had nothing to assign. An entity that doesn't hold the mortgage cannot assign it.
The chain of assignments skips an entity. Example: Assignment from Bank A directly to Bank C, when Bank B held the mortgage in between. Bank C cannot prove it received valid title.
Assignment defects destroy standing. We audit mortgage assignments for robo-signing, backdating, missing links, and improper execution.