Assignment of mortgage means any mortgage transfer from the original lending institution or lender or even the borrower, to another individual or institution.
Assignment of mortgage happens whenever any lender or lending institution sells a mortgage to another lender. Borrowers may also transfer their mortgages to another institution which takes upon the same. It means the action of transferring any mortgage across parties.
Take the concept of home loan balance transfers for example. Customers have the right to transfer their outstanding home loans, and other loans to other lenders, in case they get better terms and conditions, along with lower rates of interest. Hence, an assignment of mortgage takes place in these scenarios. Similarly, a real estate developer who has taken a construction loan from one lender may transfer the same to another, upon the receipt of better terms and conditions. This is also an assignment of mortgage. The home loan or any other real estate loan may also be directly sold by one lender to another entity which acquires it, or for other business purposes. This may be done for freeing up more capital for lending to newer borrowers. This is another example of assignment of mortgage.
