Chain of Title

Assignment of Mortgage Guide: Understanding & Challenging Mortgage Assignments

An assignment of mortgage is the legal document that transfers the mortgage (or deed of trust) from one entity to another. In the modern mortgage system, loans are frequently bought, sold, and securitized — and each transfer requires a valid, properly executed assignment. When assignments are missing, defective, or fraudulent, the foreclosing plaintiff may lack the legal right to foreclose. At Dream Financial Management, we help homeowners challenge defective assignments in all 50 states.

The Assignment Must Be Valid at the Time of Filing

The assignment must exist — and be valid — when the foreclosure complaint is filed. An assignment executed after filing, backdated to before filing, or recorded after filing doesn't retroactively grant standing. This is one of the most common and successful assignment challenges.

What Makes an Assignment Valid?

Proper Execution

The assignment must be signed by an authorized representative of the assignor (the entity transferring the mortgage). It must be notarized. In many states, it must be recorded in the county land records. An assignment signed by a person without authority — or by a known robo-signer — is void or voidable.

Correct Names and Legal Entities

The assignor must be the entity that actually owns the mortgage at the time of the assignment. If "Bank A" assigns the mortgage but "Bank B" actually owned it at that time, the assignment is defective. This is common in securitization chains where assignments were executed by entities that no longer held the loan.

Complete Chain of Assignments

Every transfer from the original lender to the current plaintiff must be documented. If there are 4 transfers, there must be 4 assignments. A single missing assignment breaks the chain. The plaintiff must prove every link — not just the most recent one.

Common Assignment Defects

Robo-Signing: Assignments signed by known robo-signers — employees who signed thousands of documents daily without reviewing them. Well-documented in consent orders and court cases. Key names: Jeffrey Stephan (GMAC), Crystal Moore (Wells Fargo), Beth Cottrell (Chase), and many others.
Backdating: Assignments dated before the complaint but actually executed afterward — sometimes years later. The notary date may reveal the true execution date. An assignment dated January 2020 but notarized January 2025 is suspect.
Wrong Assignor: MERS as nominee for "Original Lender" assigns the mortgage — but Original Lender sold the loan years earlier and no longer owns it. MERS can only assign what its principal owns.

Defective Assignment on Your Loan?

Dream Financial Management traces assignment chains and identifies fatal defects.

FAQ — Assignment of Mortgage

Does an assignment need to be recorded to be valid?
What is a "corrective assignment" and should I challenge it?
Can I challenge an assignment that happened years ago?

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