Proper Execution
The assignment must be signed by an authorized representative of the
assignor. 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.
Complete Chain of Assignments
Every transfer must be documented. A single missing assignment breaks
the chain. The plaintiff must prove every link — not just the most
recent one.
Robo-Signing:
Assignments signed by known robo-signers — Jeffrey Stephan (GMAC),
Crystal Moore (Wells Fargo), Beth Cottrell (Chase), and many
others.
Backdating:
Assignments dated before the complaint but executed afterward —
sometimes years later. The notary date may reveal the true execution
date.
Wrong Assignor:
MERS as nominee for "Original Lender" assigns the mortgage — but
Original Lender sold the loan years earlier and no longer owns
it.
Defective Assignment on Your Loan?
Dream Financial Management traces assignment chains and identifies fatal
defects.
Does an assignment need to be recorded to be valid?
It depends on state law. Some states require recording for the
assignment to be effective against third parties. Other states allow
unrecorded assignments to be effective between the parties. However,
even in states that don't require recording, an unrecorded assignment
raises questions about authenticity — especially when recorded years
after the fact. Recording statutes exist to create a public record of
ownership. Failure to record is a red flag.
What is a "corrective assignment" and should I challenge it?
A corrective assignment is filed after the original assignment —
supposedly to correct a scrivener's error in the original. Often,
corrective assignments are really attempts to fix standing defects
that existed at filing. If the original assignment was defective and
the foreclosure was filed based on it, a corrective assignment filed
later doesn't cure the standing defect. Standing must exist at filing
— a later correction confirms the original was defective.
Can I challenge an assignment that happened years ago?
Yes. You can challenge any assignment that is part of the chain of
title the plaintiff relies on. Even assignments from 10+ years ago are
subject to challenge if they're defective. The statute of limitations
for challenging the assignment itself may have passed for a separate
lawsuit, but as a defense in the foreclosure action, you can challenge
any link in the chain the plaintiff must prove.