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Understanding the Assignment of Mortgages: What You Need To Know

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A mortgage is a legally binding agreement between a home buyer and a lender that dictates a borrower's ability to pay off a loan. Every mortgage has an interest rate, a term length, and specific fees attached to it.

Written by Attorney Todd Carney . Updated November 26, 2021

If you’re like most people who want to purchase a home, you’ll start by going to a bank or other lender to get a mortgage loan. Though you can choose your lender, after the mortgage loan is processed, your mortgage may be transferred to a different mortgage servicer . A transfer is also called an assignment of the mortgage.

No matter what it’s called, this change of hands may also change who you’re supposed to make your house payments to and how the foreclosure process works if you default on your loan. That’s why if you’re a homeowner, it’s important to know how this process works. This article will provide an in-depth look at what an assignment of a mortgage entails and what impact it can have on homeownership.

Assignment of Mortgage – The Basics

When your original lender transfers your mortgage account and their interests in it to a new lender, that’s called an assignment of mortgage. To do this, your lender must use an assignment of mortgage document. This document ensures the loan is legally transferred to the new owner. It’s common for mortgage lenders to sell the mortgages to other lenders. Most lenders assign the mortgages they originate to other lenders or mortgage buyers.

Home Loan Documents

When you get a loan for a home or real estate, there will usually be two mortgage documents. The first is a mortgage or, less commonly, a deed of trust . The other is a promissory note. The mortgage or deed of trust will state that the mortgaged property provides the security interest for the loan. This basically means that your home is serving as collateral for the loan. It also gives the loan servicer the right to foreclose if you don’t make your monthly payments. The promissory note provides proof of the debt and your promise to pay it.

When a lender assigns your mortgage, your interests as the mortgagor are given to another mortgagee or servicer. Mortgages and deeds of trust are usually recorded in the county recorder’s office. This office also keeps a record of any transfers. When a mortgage is transferred so is the promissory note. The note will be endorsed or signed over to the loan’s new owner. In some situations, a note will be endorsed in blank, which turns it into a bearer instrument. This means whoever holds the note is the presumed owner.

Using MERS To Track Transfers

Banks have collectively established the Mortgage Electronic Registration System , Inc. (MERS), which keeps track of who owns which loans. With MERS, lenders are no longer required to do a separate assignment every time a loan is transferred. That’s because MERS keeps track of the transfers. It’s crucial for MERS to maintain a record of assignments and endorsements because these land records can tell who actually owns the debt and has a legal right to start the foreclosure process.

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Assignment of Mortgage Requirements and Effects

The assignment of mortgage needs to include the following:

The original information regarding the mortgage. Alternatively, it can include the county recorder office’s identification numbers.

The borrower’s name.

The mortgage loan’s original amount.

The date of the mortgage and when it was recorded.

Usually, there will also need to be a legal description of the real property the mortgage secures, but this is determined by state law and differs by state.

Notice Requirements

The original lender doesn’t need to provide notice to or get permission from the homeowner prior to assigning the mortgage. But the new lender (sometimes called the assignee) has to send the homeowner some form of notice of the loan assignment. The document will typically provide a disclaimer about who the new lender is, the lender’s contact information, and information about how to make your mortgage payment. You should make sure you have this information so you can avoid foreclosure.

Mortgage Terms

When an assignment occurs your loan is transferred, but the initial terms of your mortgage will stay the same. This means you’ll have the same interest rate, overall loan amount, monthly payment, and payment due date. If there are changes or adjustments to the escrow account, the new lender must do them under the terms of the original escrow agreement. The new lender can make some changes if you request them and the lender approves. For example, you may request your new lender to provide more payment methods.

Taxes and Insurance

If you have an escrow account and your mortgage is transferred, you may be worried about making sure your property taxes and homeowners insurance get paid. Though you can always verify the information, the original loan servicer is responsible for giving your local tax authority the new loan servicer’s address for tax billing purposes. The original lender is required to do this after the assignment is recorded. The servicer will also reach out to your property insurance company for this reason.

If you’ve received notice that your mortgage loan has been assigned, it’s a good idea to reach out to your loan servicer and verify this information. Verifying that all your mortgage information is correct, that you know who to contact if you have questions about your mortgage, and that you know how to make payments to the new servicer will help you avoid being scammed or making payments incorrectly.

Let's Summarize…

In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender’s interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage’s terms should remain the same. Your interest rate, loan amount, monthly payment, and payment schedule shouldn’t change.

Your original lender isn’t required to notify you or get your permission prior to assigning your mortgage. But you should receive correspondence from the new lender after the assignment. It’s important to verify any change in assignment with your original loan servicer before you make your next mortgage payment, so you don’t fall victim to a scam.

Attorney Todd Carney

Attorney Todd Carney is a writer and graduate of Harvard Law School. While in law school, Todd worked in a clinic that helped pro-bono clients file for bankruptcy. Todd also studied several aspects of how the law impacts consumers. Todd has written over 40 articles for sites such... read more about Attorney Todd Carney

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What Is Assignment of Mortgage: What You Need to Know

We will explore the idea of mortgage assignment in this thorough guide, going over its definition, steps involved, potential consequences, and more. So read on to learn more about this important facet of the real estate market, whether you’re a homeowner, a prospective buyer, or just inquisitive about mortgages.

What is Assignment of Mortgage?

The assignment of mortgage, often simply referred to as mortgage assignment , is a legal process that involves the transfer of a mortgage loan from one party to another. This transfer typically occurs between mortgage lenders or financial institutions and is a common practice within the mortgage industry.

The Key Parties Involved

Assignor: The person transferring the mortgage is known as the assignor. The initial lender or financial organization that gave the borrower the mortgage loan is often the assignor.
Assignee: The assignee is the party receiving the mortgage assignment. This could be another lender or financial institution that is buying the mortgage, often as part of a financial transaction.
Borrower: The borrower is the individual or entity that initially took out the mortgage loan to finance the purchase of a property.

Why is Assignment of Mortgage Necessary?

Assignment of mortgage occurs for various reasons, and it serves specific purposes for all parties involved.

1. Loan Portfolio Management

Mortgage assignment is a common practice used by lenders to better manage their loan portfolios. Lenders might raise funds to offer more loans or issue new mortgages by selling or transferring mortgage loans to other financial organizations. This procedure aids in keeping their portfolios risk-balanced and liquid.

2. Risk Mitigation

Lenders may also assign mortgages to mitigate risk. When they transfer a mortgage to another entity, they are essentially transferring the associated risk as well. This can be a strategic move to reduce their exposure to potential defaults or financial instability.

3. Secondary Mortgage Market

The secondary mortgage market plays a significant role in the assignment of mortgages. Many mortgages are bundled together into mortgage-backed securities (MBS) and sold to investors. Assignment of mortgages allows lenders to participate in this market, which provides additional funding for new mortgage loans.

The Assignment of Mortgage Process

The process of assigning a mortgage, or deciding to sell your mortgage , involves several steps and legal requirements. Here’s a breakdown of the typical process:

1. Agreement between Parties

The assignor (original lender) and assignee (new lender or investor) must enter into a formal agreement outlining the terms and conditions of the new mortgage assignment. This agreement includes details such as the transfer price, terms of the loan, and any specific warranties or representations.

2. Notice to the Borrower

Once the agreement is in place, the borrower is typically notified of the assignment. This notice informs them that the servicing of their mortgage, including collecting monthly mortgage payments, will now be handled by the assignee. The borrower is advised to send future payments to the assignee.

3. Recordation

In many jurisdictions, mortgage assignments must be recorded with the appropriate government office, such as the county recorder’s office. This recordation provides public notice of the transfer and ensures that the assignee has a legal claim on the property.

4. Continuation of Monthly Mortgage Payments

For the borrower, the most noticeable change is the address where monthly payments are sent. Instead of sending payment to the original lender, the borrower will send them to the assignee. It is crucial for borrowers to keep records of these changes to avoid any confusion or missed payments.

Implications of Mortgage Assignment for Borrowers

While the assignment of mortgage primarily involves lenders and investors, it can have implications for borrowers as well. Here are some important considerations for borrowers:

1. No Change in Loan Terms

Borrowers should be aware that the assignment of mortgage does not change the terms of their loan. The interest rate, monthly payments, and other loan terms remain the same. The only change is the entity to which payments are made.

2. Proper Record-Keeping

Borrowers must maintain accurate records of their mortgage payments and correspondence related to the assignment. This helps ensure that payments are correctly credited and can be vital in case of any disputes or issues.

3. Communication with the New Lender

If borrowers have questions or concerns about their mortgage after the assignment, they should reach out to the new lender or servicer. Open and clear communication can help address any issues that may arise during the transition.

4. Property Taxes and Insurance

Borrowers are still responsible for property taxes and homeowner’s insurance, even after the assignment of mortgage. These payments are typically not affected by the transfer of the loan.

The Role of Mortgage Servicers

Mortgage servicers play a crucial role in the assignment of mortgage process. This section will explore the responsibilities of mortgage servicers, their relationship with borrowers, and how they manage mortgage loans on behalf of investors or lenders.

Legal Requirements and Regulations

Assignment is subject to various legal mortgage requirements and regulations that vary by jurisdiction. Discussing these legal aspects will help readers understand the legal framework governing the assignment of mortgages in their region and how it impacts the process.

Impact on Credit and Credit Reporting

The assignment of mortgage can have implications for borrowers’ credit reports and scores. Explore how mortgage assignment can affect credit histories, reporting by credit bureaus, and what borrowers can do to protect their credit during and after the assignment.

Assignment of Mortgage vs. Assumption of Mortgage

Differentiating between assignment of mortgage and assumption of mortgage is important. This section will explain the key differences, where one party takes over the mortgage and liability, while the other party merely transfers the loan to a new lender.

Impact on Property Taxes and Insurance

Taxes and insurance are essential components of homeownership. Explain how the assignment of mortgage may affect property tax payments and the homeowner’s insurance policy, as these are often escrowed into the monthly mortgage payment.

Potential Challenges and Disputes

Discuss common challenges or disputes that can arise during or after the assignment of mortgage, such as miscommunication, incorrect payment processing, or disputes over ownership rights. Offer advice on how to handle and resolve these issues.

Foreclosure and Default Scenarios

In the unfortunate event of mortgage default, understanding how the assignment of mortgage affects foreclosure proceedings is crucial. Explain how the assignee handles foreclosures and what options are available to borrowers facing financial difficulties.

Future Trends and Innovations

Explore emerging trends and innovations in the mortgage industry related to the assignment of mortgages. This could include the use of blockchain technology, digital mortgages, or other advancements that may impact the process.

In the complex world of real estate and mortgage financing , the assignment of mortgage plays a pivotal role in the movement of funds and management of risk. It allows lenders to efficiently manage their portfolios, mitigate risk, and participate in the secondary mortgage market. For borrowers, understanding the process and implications of mortgage assignment is essential to ensure the smooth continuation of their monthly mortgage payments.

As you navigate the world of homeownership or consider entering it, remember that the assignment of mortgage is a routine occurrence designed to benefit all parties involved. By staying informed and maintaining open communication with your lender or servicer, you can ensure that your mortgage loan remains a manageable and secure financial commitment.

In summary, purchase of mortgage is a vital mechanism within the mortgage industry that facilitates the transfer of mortgage loans from one party to another. This process helps lenders manage their portfolios, mitigate risk, and participate in the secondary mortgage market.

For borrowers, it means a change in the entity collecting their monthly mortgage payments but typically does not alter the terms of the original loan. Keeping accurate records and staying informed about the transition are crucial steps to ensure a smooth experience for homeowners. So, whether you’re a homeowner, lender, or investor, understanding assignment of mortgage is key to navigating the real estate landscape effectively.

This article is for informational purposes only and does not constitute legal, tax, or accounting advice.

Written by Alan Noblitt

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Understanding how assignments of mortgage work.

The bank or other mortgage lender that provides a borrower with the funds to purchase a home often later transfers or assigns its interest in the mortgage to another firm. When this happens, the borrower will start sending monthly mortgage payments to the new owner of the mortgage instead of the original lender. Some other things, such as the available modes of payment, many also change. However, the general terms of the mortgage, such as the interest rate and payment amounts, will stay the same.

If you need help with a mortgage, consider finding a financial advisor to work with .

Mortgage Assignment Basics

Mortgages are assigned using a document called an assignment of mortgage. This legally transfers the original lender’s interest in the loan to the new company. After doing this, the original lender will no longer receive the payments of principal and interest. However, by assigning the loan the mortgage company will free up capital. This allows the original lender to make more loans and generate additional origination and other fees.

At closing, borrowers sign a document granting the original lender the right to assign the mortgage elsewhere. This means the original lender doesn’t have to ask for permission to assign the mortgage but can do so whenever it wants to. Often this occurs within a few months after the closing, but it can happen at any time during the term of a mortgage. Once a loan has been assigned, it can be assigned again.

The assignment of mortgage document uses several pieces of information to accurately identify the specific mortgage that is being transferred. These generally include:

The name of the borrower

The date of the mortgage

The jurisdiction where it was recorded

The amount of money that was originally loaned

A legal description of the home or other property used as collateral to secure the loan.

Although a lender doesn’t need to request the borrower’s permission before assigning a mortgage, the lender does have to notify the borrower after the mortgage has been assigned. This notice will generally provide the new lender’s name, contact information and mailing address or other information need to make payments.

Effects of Mortgage Assignment

When a mortgage is assigned, the original terms of the mortgage remain unchanged. The monthly principal and interest, interest rate and total number of payments required to pay the loan off will be the same as on the mortgage when it was signed at closing.

A company assigned a mortgage may have different methods of accepting monthly payments, such as online payments, paper checks or money orders. A borrower who wants more payment methods may be able to get a new mortgage holder to provide them upon request.

Some things may change, however. For instance, the new owner of the mortgage may have a different method of handling escrow payments that are used to pay property taxes and the premiums for hazard insurance. The law requires mortgage companies to charge no more than one-twelfth the annual cost of property taxes and insurance each month. However, they can also require borrowers to maintain a cushion of up to one-sixth the annual total required to pay taxes and insurance. If a new mortgage company has a different policy on this cushion, it could change the total monthly payment.

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The borrower also does not need to notify the local taxing authorities or the hazard insurance provider about the assignment. The new holder of the mortgage is required to handle these notifications.

Borrowers should check the information about where payments are supposed to go. This need to be accurate so payments will be directed correctly to the holder of the mortgage and the borrower will receive credit for them.

Another important matter that may change when a loan is assigned is the procedure the mortgage company will follow in the event of default. Borrowers should make themselves familiar with the notification methods used by the new mortgage to let them know if payments are not being received and foreclosure is in the offing.

The Bottom Line

Home mortgages are often assigned by their original lenders to other companies. Assignment usually doesn’t change much for the borrower, except that the payments will go to a different address. The original loan amount, interest payment, term and monthly principal and interest part of the payment will stay the same. Assigning mortgages frees up money for the lenders to make more loans. Borrowers don’t have to be told a mortgage will be assigned, since they agree to this at closing. However, they must be notified after an assignment and told how to contact the new mortgage holder.

Mortgage Tips

A financial advisor can help you evaluate home buying and other important financial moves. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now .

Borrowers can find out whether and where their mortgage has been assigned through the Mortgage Electronic Registration Systems (MERS). This is an organization created by mortgage companies to track mortgage assignments. Borrowers can use a free online service provided by MERS to find out who owns their mortgage.

Mortgage rates are more volatile than they have been in a long time. Check out SmartAsset’s mortgage rates table to get a better idea of what the market looks like right now.

Photo credit: ©iStock.com/ArLawKa AungTun, ©iStock.com/ridvan_celik, ©iStock.com/damircudic

The post Understanding How Assignments of Mortgage Work appeared first on SmartAsset Blog .

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Demystifying mortgage assignment: what it means for borrowers and lenders, demystifying mortgage assignment: what it means for borrowers and lenders. explore the process, benefits, and risks in our comprehensive guide..

A mortgage assignment is a financial process in which an existing mortgage is transferred from the current holder to another party. It can occur for various reasons, such as a lender selling the mortgage to another bank or financial institution.

Understanding mortgage assignment is essential for both borrowers and lenders, as it impacts the terms and the handling of the loan.

This brief introduction lays the groundwork for a deeper understanding of what mortgage assignment entails and its significance in the mortgage industry.

Understanding Mortgage Assignment

Mortgage assignment is when the original lender transfers the mortgage to another lender or financial institution. This can occur for various reasons, including the original lender wanting to liquidate assets or reduce risk exposure.

Steps in the Mortgage Assignment Process

Discover the critical steps in the mortgage assignment process, from initiation to completion, ensuring a smooth transfer between lenders and maintaining clarity for borrowers.

The process begins when the original lender assigns the mortgage to another party. This decision can be driven by a strategic need to manage financial resources more effectively.

The original and the new lender agree on the terms of the assignment. This agreement includes details about the transfer of rights and the responsibilities each party will hold.

Notification

The borrower is informed about the mortgage assignment. Borrowers must receive clear and concise information about what this change means for their mortgage terms.

Legal Documentation

The transfer of a mortgage is formalized through legal documents. These documents are critical as they protect the rights of all parties involved, ensuring the assignment adheres to financial regulations.

The mortgage assignment is complete once all parties have signed the legal documents and all conditions are met. The new lender now holds the rights and duties originally held by the original lender.

Critical Points for Borrowers and Lenders

Borrowers should pay attention to any changes in the terms of their mortgage, and both lenders need to handle the legal aspects carefully to prevent future disputes. Proper communication between all parties can smooth the transition and maintain trust.

Mortgage assignment doesn't have to be a complicated affair. Clear communication and adherence to legal procedures can be a straightforward process beneficial to all involved.

Advantages of Mortgage Assignment for Lenders and Borrowers

Mortgage assignment offers significant benefits for both lenders and borrowers, each finding unique advantages in the process. Understanding these benefits can help parties make informed decisions about their mortgage management strategies.

For Lenders

Mortgage assignment allows lenders to free up capital and reduce risk by transferring the mortgage to another party, optimizing their financial assets efficiently.

Freeing Up Capital

One of the primary advantages for lenders in the process of mortgage assignment is the ability to free up capital.

By transferring the rights of a mortgage to another financial institution or entity, the original lender can redeploy resources into new lending opportunities or other investments. This can improve the lender's liquidity and enhance its financial flexibility.

Reducing Risk

Mortgage assignment also allows lenders to reduce their risk exposure. When a mortgage is transferred, the associated risks, such as the possibility of default, are also transferred to the acquiring party.

This shift can help the original lender manage its risk portfolio more effectively, allowing for a more stable financial position.

For Borrowers

For borrowers, mortgage assignment can lead to better loan terms and ensure the continuity of their mortgage agreement with a new lender.

Potential for Better Terms

For borrowers, one of the critical advantages of mortgage assignment is the potential to secure better terms from a new lender. This new lender may offer lower interest rates, better repayment conditions, or more favorable terms to attract and maintain clients.

As a result, borrowers can enjoy cost savings and a loan structure more aligned with their current financial situation.

Continuity of Agreement

Despite the change in the lender, mortgage assignment ensures that the continuity of the mortgage agreement is maintained. This means that borrowers do not have to renegotiate the fundamental terms of their mortgage.

Their payment schedule, interest rate, and loan duration remain the same, providing them stability and predictability in their financial planning.

Potential Risks and Disadvantages of Mortgage Assignment

Mortgage assignment can be a valuable tool for managing financial portfolios for borrowers and lenders.

However, it comes with certain risks and disadvantages that must be considered. This section outlines some challenges, helping both parties make informed decisions.

In the mortgage assignment process, lenders face significant challenges, including legal complexities and managing borrower expectations, which require careful navigation to avoid disputes and dissatisfaction.

Legal Complexities and Potential Disputes

One of the primary concerns for lenders in the process of mortgage assignment is the array of legal complexities that can arise.

Transferring a mortgage from one lender to another involves meticulous documentation and strict adherence to legal standards, which, if not properly managed, can lead to disputes with borrowers. These disputes may revolve around misunderstandings about the mortgage terms or the new lender's responsibilities.

Challenges in Managing Borrower Expectations

Lenders may also face challenges in managing borrower expectations during a mortgage assignment. Borrowers might not fully understand the implications of their mortgage being assigned to another lender, which can lead to dissatisfaction or conflict.

Lenders must clearly and effectively communicate what a mortgage assignment means and how it will affect the borrower's loan terms and conditions.

This section examines borrowers' challenges during mortgage assignments, focusing on potential changes regarding the risks of engaging with a new lending institution.

Possible Changes in Mortgage Terms

For borrowers, one of the significant risks associated with mortgage assignment is the potential for changes in the terms of their mortgage.

When a new lender takes over a mortgage, they might adjust the interest rates, payment schedules, or other terms to align with their lending policies. Such changes can sometimes be unfavorable to borrowers, increasing their financial burden.

Risks of Dealing with a New Lending Institution

Additionally, borrowers face risks related to the reputation and stability of the new lending institution. If the new lender has less favorable customer service or a weaker financial position, it could impact the borrower's experience and mortgage security.

Borrowers must thoroughly research the new lender and ensure they are comfortable with their practices and stability.

Considering Mortgage Assignment? Fetch Your Rate Today

As we conclude our discussion on mortgage assignment, it's clear that borrowers and lenders can benefit from this process when managed effectively.

Whether you're a lender looking to reorganize your portfolio or a borrower facing a change in the lender, understanding the terms and conditions of mortgage assignment is critical.

If you're contemplating a mortgage assignment, now is the time to contact Fetch arate and see how this option might work.

Knowledge Base

What is an assignment of mortgage and how is it processed?

An Assignment of Mortgage is a process by which you can refinance your mortgage while saving money on mortgage taxes (this process is also known as a CEMA). We do allow assignments on existing credit union mortgages, however, we do not allow assignments on home equity products. The details, including associated fees, can be found below.

If you have a mortgage with another lender and are looking to refinance with the Credit Union under an assignment, you must first find out from the current lender if they allow assignments, any documentation they require, and all fees associated with the assignment. Once you are ready to move forward, you can apply with us . 　

Assignment of Mortgage Requirements

In order to process an Assignment of Mortgage, we will need the following documentation from you and/or your new lender:

A commitment letter listing their address as they require it to read on the Assignment of Mortgage document.
A copy of the mortgage schedule from the title search reflecting Jovia Financial Credit Union F/K/A Nassau Educators Federal Credit Union as lienholder on the subject property.
A signed, authorization from all borrowers on the existing Jovia mortgage.

All documents can be e-mailed to the credit union at [email protected] or faxed to

(516) 714-2831, Attn: Loan Servicing.

We will begin processing your request once all documentation has been received. Please allow 7-10 business days for completion.

____________________________________________________________________________


Document Preparation	$300	Jovia	Jovia
Document Preparation	$200	O’Reilly, Marsh & Corteselli P.C.	O’Reilly, Marsh & Corteselli P.C.
Closing Attendance Fee*	$250	O’Reilly, Marsh & Corteselli P.C.	O’Reilly, Marsh & Corteselli P.C.

All fees are due at closing.

*The closing attendance fee listed above is based on a closing in Nassau County. The fee may vary for closings outside of Nassau County.

The Credit Union’s attorney will bring the original Assignment of Mortgage to the closing.

To schedule attendance for your closing, please contact our attorneys, O’Reilly, Marsh & Corteselli P.C. directly at 516-741-1818.

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Chapter B8-6, Mortgage Assignments

Mortgage assignments table of contents.

B8-6-01, Authorized Use of Intervening and Blanket Assignments

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(Published: September 04 2024)

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Copyright and Preface
A1-1-01, Application and Approval of Seller/Servicer
A2-1-01, Contractual Obligations for Sellers/Servicers
A2-1-02, Nature of Mortgage Transaction
A2-1-03, Indemnification for Losses
A2-2-01, Representations and Warranties Overview
A2-2-02, Delivery Information and Delivery-Option Specific Representations and Warranties
A2-2-03, Document Warranties
A2-2-04, Limited Waiver and Enforcement Relief of Representations and Warranties
A2-2-05, Invalidation of Limited Waiver of Representations and Warranties
A2-2-06, Representations and Warranties on Property Value
A2-2-07, Life-of-Loan Representations and Warranties
A2-3.1-01, Lender Breach of Contract
A2-3.1-02, Sanctions, Suspensions, and Terminations
A2-3.2-01, Loan Repurchases and Make Whole Payments Requested by Fannie Mae
A2-3.2-02, Enforcement Relief for Breaches of Certain Representations and Warranties Related to Underwriting and Eligibility
A2-3.2-03, Remedies Framework
A2-3.3-01, Compensatory Fees
A2-4.1-01, Establishing Loan Files
A2-4.1-02, Ownership and Retention of Loan Files and Records
A2-4.1-03, Electronic Records, Signatures, and Transactions
A2-4.1-04, Notarization Standards
A2-5-01, Fannie Mae Trade Name and Trademarks
A3-1-01, Fannie Mae’s Technology Products
A3-2-01, Compliance With Laws
A3-2-02, Responsible Lending Practices
A3-3-01, Outsourcing of Mortgage Processing and Third-Party Originations
A3-3-02, Concurrent Servicing Transfers
A3-3-03, Other Servicing Arrangements
A3-3-04, Document Custodians
A3-3-05, Custody of Mortgage Documents
A3-4-01, Confidentiality of Information
A3-4-02, Data Quality and Integrity
A3-4-03, Preventing, Detecting, and Reporting Mortgage Fraud
A3-5-01, Fidelity Bond and Errors and Omissions Coverage Provisions
A3-5-02, Fidelity Bond Policy Requirements
A3-5-03, Errors and Omissions Policy Requirements
A3-5-04, Reporting Fidelity Bond and Errors and Omissions Events
A4-1-01, Maintaining Seller/Servicer Eligibility
A4-1-02, Submission of Financial Statements and Reports
A4-1-03, Report of Changes in the Seller/Servicer’s Organization
A4-1-04, Submission of Irrevocable Limited Powers of Attorney
B1-1-01, Contents of the Application Package
B1-1-02, Blanket Authorization Form
B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns
B2-1.1-01, Occupancy Types
B2-1.2-01, Loan-to-Value (LTV) Ratios
B2-1.2-02, Combined Loan-to-Value (CLTV) Ratios
B2-1.2-03, Home Equity Combined Loan-to-Value (HCLTV) Ratios
B2-1.2-04, Subordinate Financing
B2-1.3-01, Purchase Transactions
B2-1.3-02, Limited Cash-Out Refinance Transactions
B2-1.3-03, Cash-Out Refinance Transactions
B2-1.3-04, Prohibited Refinancing Practices
B2-1.3-05, Payoff of Installment Land Contract Requirements
B2-1.4-01, Fixed-Rate Loans
B2-1.4-02, Adjustable-Rate Mortgages (ARMs)
B2-1.4-03, Convertible ARMs
B2-1.4-04, Temporary Interest Rate Buydowns
B2-1.5-01, Loan Limits
B2-1.5-02, Loan Eligibility
B2-1.5-03, Legal Requirements
B2-1.5-04, Escrow Accounts
B2-1.5-05, Principal Curtailments
B2-2-01, General Borrower Eligibility Requirements
B2-2-02, Non–U.S. Citizen Borrower Eligibility Requirements
B2-2-03, Multiple Financed Properties for the Same Borrower
B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction
B2-2-05, Inter Vivos Revocable Trusts
B2-2-06, Homeownership Education and Housing Counseling
B2-2-07, First-Generation Homebuyer Loans
B2-3-01, General Property Eligibility
B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing
B2-3-03, Special Property Eligibility and Underwriting Considerations: Leasehold Estates
B2-3-04, Special Property Eligibility Considerations
B2-3-05, Properties Affected by a Disaster
B3-1-01, Comprehensive Risk Assessment
B3-2-01, General Information on DU
B3-2-02, DU Validation Service
B3-2-03, Risk Factors Evaluated by DU
B3-2-04, DU Documentation Requirements
B3-2-05, Approve/Eligible Recommendations
B3-2-06, Approve/Ineligible Recommendations
B3-2-07, Refer with Caution Recommendations
B3-2-08, Out of Scope Recommendations
B3-2-09, Erroneous Credit Report Data
B3-2-10, Accuracy of DU Data, DU Tolerances, and Errors in the Credit Report
B3-2-11, DU Underwriting Findings Report
B3-3.1-01, General Income Information
B3-3.1-02, Standards for Employment Documentation
B3-3.1-03, Base Pay (Salary or Hourly), Bonus, and Overtime Income
B3-3.1-04, Commission Income
B3-3.1-05, Secondary Employment Income (Second Job and Multiple Jobs) and Seasonal Income
B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C
B3-3.1-07, Verbal Verification of Employment
B3-3.1-08, Rental Income
B3-3.1-09, Other Sources of Income
B3-3.1-10, Income Calculator
B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower
B3-3.2-02, Business Structures
B3-3.2-03, IRS Forms Quick Reference
B3-3.3-01, General Information on Analyzing Individual Tax Returns
B3-3.3-02, Income Reported on IRS Form 1040
B3-3.3-03, Income or Loss Reported on IRS Form 1040, Schedule C
B3-3.3-04, Income or Loss Reported on IRS Form 1040, Schedule D
B3-3.3-05, Income or Loss Reported on IRS Form 1040, Schedule E
B3-3.3-06, Income or Loss Reported on IRS Form 1040, Schedule F
B3-3.3-07, Income or Loss Reported on IRS Form 1065 or IRS Form 1120S, Schedule K-1
B3-3.4-01, Analyzing Partnership Returns for a Partnership or LLC
B3-3.4-02, Analyzing Returns for an S Corporation
B3-3.4-03, Analyzing Returns for a Corporation
B3-3.4-04, Analyzing Profit and Loss Statements
B3-3.5-01, Income and Employment Documentation for DU
B3-3.5-02, Income from Rental Property in DU
B3-4.1-01, Minimum Reserve Requirements
B3-4.1-02, Interested Party Contributions (IPCs)
B3-4.1-03, Types of Interested Party Contributions (IPCs)
B3-4.1-04, Virtual Currency
B3-4.2-01, Verification of Deposits and Assets
B3-4.2-02, Depository Accounts
B3-4.2-03, Individual Development Accounts
B3-4.2-04, Pooled Savings (Community Savings Funds)
B3-4.2-05, Foreign Assets
B3-4.3-01, Stocks, Stock Options, Bonds, and Mutual Funds
B3-4.3-02, Trust Accounts
B3-4.3-03, Retirement Accounts
B3-4.3-04, Personal Gifts
B3-4.3-05, Gifts of Equity
B3-4.3-06, Grants and Lender Contributions
B3-4.3-07, Disaster Relief Grants or Loans
B3-4.3-08, Employer Assistance
B3-4.3-09, Earnest Money Deposit
B3-4.3-10, Anticipated Sales Proceeds
B3-4.3-11, Trade Equity
B3-4.3-12, Rent-Related Credits
B3-4.3-13, Sweat Equity
B3-4.3-14, Bridge/Swing Loans
B3-4.3-15, Borrowed Funds Secured by an Asset
B3-4.3-16, Credit Card Financing and Reward Points
B3-4.3-17, Personal Unsecured Loans
B3-4.3-18, Sale of Personal Assets
B3-4.3-19, Cash Value of Life Insurance
B3-4.3-20, Anticipated Savings and Cash-on-Hand
B3-4.3-21, Borrower's Earned Real Estate Commission
B3-4.4-01, DU Asset Verification
B3-4.4-02, Requirements for Certain Assets in DU
B3-5.1-01, General Requirements for Credit Scores
B3-5.1-02, Determining the Credit Score for a Mortgage Loan
B3-5.2-01, Requirements for Credit Reports
B3-5.2-02, Types of Credit Reports
B3-5.2-03, Accuracy of Credit Information in a Credit Report
B3-5.3-01, Number and Age of Accounts
B3-5.3-02, Payment History
B3-5.3-03, Previous Mortgage Payment History
B3-5.3-04, Inquiries: Recent Attempts to Obtain New Credit
B3-5.3-05, Credit Utilization
B3-5.3-06, Authorized Users of Credit
B3-5.3-07, Significant Derogatory Credit Events — Waiting Periods and Re-establishing Credit
B3-5.3-08, Extenuating Circumstances for Derogatory Credit
B3-5.3-09, DU Credit Report Analysis
B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit
B3-5.4-02, Number and Types of Nontraditional Credit References
B3-5.4-03, Documentation and Assessment of a Nontraditional Credit History
B3-6-01, General Information on Liabilities
B3-6-02, Debt-to-Income Ratios
B3-6-03, Monthly Housing Expense for the Subject Property
B3-6-04, Qualifying Payment Requirements
B3-6-05, Monthly Debt Obligations
B3-6-06, Qualifying Impact of Other Real Estate Owned
B3-6-07, Debts Paid Off At or Prior to Closing
B3-6-08, DU: Requirements for Liability Assessment
B4-1.1-01, Definition of Market Value
B4-1.1-02, Lender Responsibilities
B4-1.1-03, Appraiser Selection Criteria
B4-1.1-04, Unacceptable Appraisal Practices
B4-1.1-05, Disclosure of Information to Appraisers
B4-1.1-06, Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal (UCDP)
B4-1.2-01, Appraisal Report Forms and Exhibits
B4-1.2-02, Desktop Appraisals
B4-1.2-03, Hybrid Appraisals
B4-1.2-04, Appraisal Age and Use Requirements
B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements
B4-1.3-01, Review of the Appraisal Report
B4-1.3-02, Subject and Contract Sections of the Appraisal Report
B4-1.3-03, Neighborhood Section of the Appraisal Report
B4-1.3-04, Site Section of the Appraisal Report
B4-1.3-05, Improvements Section of the Appraisal Report
B4-1.3-06, Property Condition and Quality of Construction of the Improvements
B4-1.3-07, Sales Comparison Approach Section of the Appraisal Report
B4-1.3-08, Comparable Sales
B4-1.3-09, Adjustments to Comparable Sales
B4-1.3-10, Cost and Income Approach to Value
B4-1.3-11, Valuation Analysis and Reconciliation
B4-1.3-12, Appraisal Quality Matters
B4-1.4-01, Factory-Built Housing: Manufactured Housing
B4-1.4-02, Factory-Built Housing: Modular, Prefabricated, Panelized, or Sectional Housing
B4-1.4-03, Condo Appraisal Requirements
B4-1.4-04, Co-op Appraisal Requirements
B4-1.4-05, Leasehold Interests Appraisal Requirements
B4-1.4-06, Community Land Trust Appraisal Requirements
B4-1.4-07, Mixed-Use Property Appraisal Requirements
B4-1.4-08, Environmental Hazards Appraisal Requirements
B4-1.4-09, Special Assessment or Community Facilities Districts Appraisal Requirements
B4-1.4-10, Value Acceptance (Appraisal Waiver)
B4-1.4-11, Value Acceptance + Property Data
B4-2.1-01, General Information on Project Standards
B4-2.1-02, Waiver of Project Review
B4-2.1-03, Ineligible Projects
B4-2.1-04, Environmental Hazard Assessments
B4-2.1-05, Unacceptable Environmental Hazards
B4-2.1-06, Remedial Actions for Environmental Hazard Assessments Below Standards
B4-2.2-01, Limited Review Process
B4-2.2-02, Full Review Process
B4-2.2-03, Full Review: Additional Eligibility Requirements for Units in New and Newly Converted Condo Projects
B4-2.2-04, Geographic-Specific Condo Project Considerations
B4-2.2-05, FHA-Approved Condo Review Eligibility
B4-2.2-06, Project Eligibility Review Service (PERS)
B4-2.2-07, Projects with Special Considerations and Project Eligibility Waivers
B4-2.3-01, Eligibility Requirements for Units in PUD Projects
B4-2.3-02, Co-op Project Eligibility
B4-2.3-03, Legal Requirements for Co-op Projects
B4-2.3-04, Loan Eligibility for Co-op Share Loans
B4-2.3-05, Geographic-Specific Co-op Project Considerations
B5-1-01, High-Balance Mortgage Loan Eligibility and Underwriting
B5-1-02, High-Balance Pricing, Mortgage Insurance, Special Feature Codes, and Delivery Limitations
B5-2-01, Manufactured Housing
B5-2-02, Manufactured Housing Loan Eligibility
B5-2-03, Manufactured Housing Underwriting Requirements
B5-2-04, Manufactured Housing Pricing, Mortgage Insurance, and Loan Delivery Requirements
B5-2-05, Manufactured Housing Legal Considerations
B5-3.1-01, Conversion of Construction-to-Permanent Financing: Overview
B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions
B5-3.1-03, Conversion of Construction-to-Permanent Financing: Two-Closing Transactions
B5-3.2-01, HomeStyle Renovation Mortgages
B5-3.2-02, HomeStyle Renovation Mortgages: Loan and Borrower Eligibility
B5-3.2-03, HomeStyle Renovation Mortgages: Collateral Considerations
B5-3.2-04, HomeStyle Renovation Mortgages: Costs and Escrow Accounts
B5-3.2-05, HomeStyle Renovation Mortgages: Completion Certification
B5-3.2-06, HomeStyle Renovation: Renovation Contract, Renovation Loan Agreement, and Lien Waiver
B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties
B5-3.4-01, Property Assessed Clean Energy Loans
B5-4.1-01, Texas Section 50(a)(6) Loans
B5-4.1-02, Texas Section 50(a)(6) Loan Eligibility
B5-4.1-03, Texas Section 50(a)(6) Loan Underwriting, Collateral, and Closing Considerations
B5-4.1-04, Texas Section 50(a)(6) Loan Delivery and Servicing Considerations
B5-4.2-01, Native American Conventional Lending Initiative (NACLI)
B5-4.2-02, Disaster-Related Limited Cash-Out Refinance Flexibilities
B5-4.2-03, Loans Secured by HomePath Properties
B5-5.1-01, Community Seconds Loans
B5-5.1-02, Community Seconds Loan Eligibility
B5-5.1-03, Community Seconds: Shared Appreciation Transactions
B5-5.2-01, Loans With Resale Restrictions: General Information
B5-5.2-02, Loans with Resale Restrictions: Eligibility, Collateral and Delivery Requirements
B5-5.3-01, Shared Equity Overview
B5-5.3-02, Shared Equity Transactions: General Requirements
B5-5.3-03, Shared Equity Transactions: Eligibility, Underwriting and Collateral Requirements
B5-5.3-04, Massachusetts Resale Restriction Loan Eligibility Requirements
B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility
B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements
B5-6-03, HomeReady Mortgage Loan Pricing, Mortgage Insurance, and Special Feature Codes
B5-7-01, High LTV Refinance Loan and Borrower Eligibility
B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral Requirements for the New Loan
B5-7-03, High LTV Refinance Alternative Qualification Path
B5-7-04, High LTV Refinance Representations and Warranties
B5-7-05, High LTV Refinance Pricing, Mortgage Insurance, and Special Feature Codes
B6-1-01, General Government Mortgage Loan Requirements
B6-1-02, Eligible FHA-Insured Mortgage Loans
B6-1-03, Eligible VA-Guaranteed Mortgages
B6-1-04, Eligible HUD-Guaranteed Section 184 Mortgages
B6-1-05, Eligible RD-Guaranteed Mortgages
B7-1-01, Provision of Mortgage Insurance
B7-1-02, Mortgage Insurance Coverage Requirements
B7-1-03, Lender-Purchased Mortgage Insurance
B7-1-04, Financed Borrower-Purchased Mortgage Insurance
B7-1-05, Government Mortgage Loan Guaranty or Insurance
B7-2-01, Provision of Title Insurance
B7-2-02, Title Insurer Requirements
B7-2-03, General Title Insurance Coverage
B7-2-04, Special Title Insurance Coverage Considerations
B7-2-05, Title Exceptions and Impediments
B7-2-06, Attorney Title Opinion Letter Requirements
B7-3-01, General Property Insurance Requirements for All Property Types
B7-3-02, Property Insurance Requirements for One-to Four-Unit Properties
B7-3-03, Master Property Insurance Requirements for Project Developments
B7-3-04, Individual Property Insurance Requirements for a Unit in a Project Development
B7-3-05, Additional Insurance Requirements
B7-3-06, Flood Insurance Requirements for All Property Types
B7-3-07, Evidence of Property Insurance
B7-3-08, Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements
B7-4-01, General Liability Insurance Requirements for Project Developments
B7-4-02, Fidelity/Crime Insurance Requirements for Project Developments
B8-1-01, Publication of Legal Documents
B8-2-01, Security Instruments for Conventional Mortgages
B8-2-02, Special-Purpose Security Instruments
B8-2-03, Signature Requirements for Security Instruments
B8-3-01, Notes for Conventional Mortgages
B8-3-02, Special Note Provisions and Language Requirements
B8-3-03, Signature Requirements for Notes
B8-3-04, Note Endorsement
B8-4-01, Riders and Addenda
B8-5-01, General Information on Special-Purpose Legal Documents
B8-5-02, Inter Vivos Revocable Trust Mortgage Documentation and Signature Requirements
B8-5-03, HomeStyle Renovation Mortgage Documentation Requirements
B8-5-04, Sample Legal Documents
B8-5-05, Requirements for Use of a Power of Attorney
B8-7-01, Mortgage Electronic Registration Systems (MERS), Inc.
B8-8-01, General Information on eMortgages
B8-8-02, Requirements for Creating, Closing, and Correcting eNotes
C1-1-01, Execution Options
C1-2-01, General Information on Delivering Loan Data and Documents
C1-2-02, Loan Data and Documentation Delivery Requirements
C1-2-03, Ownership of Mortgage Loans Prior to Purchase or Securitization and Third-Party Security Interests
C1-2-04, Delivering eMortgages to Fannie Mae
C1-2-05, Delivering Green MBS to Fannie Mae
C1-2-06, Bailee Letters
C1-3-01, General Information on Remittance Types
C2-1.1-01, Mandatory Commitment Process
C2-1.1-02, General Information about Mandatory Commitment Pricing and Fees
C2-1.1-03, Mandatory Commitment Terms, Amounts, Periods and Other Requirements
C2-1.1-04, Mandatory Commitment Extensions and Pair-Offs
C2-1.1-05, Servicing Fees
C2-1.1-06, Accrued Interest Payments for Regularly Amortizing Mortgages
C2-1.1-07, Standard ARM and Converted ARM Resale Commitments
C2-1.2-01, Best Efforts Commitment Process
C2-1.2-02, Best Efforts Commitment Pricing, Periods, and Fees
C2-1.2-03, Best Efforts Commitment Terms, Amounts, and Other Requirements
C2-1.3-01, Servicing Marketplace
C2-2-01, General Requirements for Good Delivery of Whole Loans
C2-2-02, Documentation Requirements for Whole Loan Deliveries
C2-2-03, General Information on Whole Loan Purchasing Policies
C2-2-04, Timing of Distribution of Whole Loan Purchase Proceeds
C2-2-05, Whole Loan Purchasing Process
C2-2-06, Authorization to Transfer Funds
C2-2-07, Purchase Payee Codes
C3-1-01, General Information About Fannie Mae’s MBS Program
C3-1-02, Preparing to Pool Loans into MBS
C3-2-01, Determining Eligibility for Loans Pooled into MBS
C3-2-02, Selecting a Servicing Option
C3-2-03, MBS Remittance Type and Selecting a Remittance Cycle
C3-2-04, Mandatory MBS Commitments
C3-3-01, Determining and Remitting Guaranty Fees
C3-3-02, Accessing Buyup and Buydown Ratios and Calculating Payments or Charges
C3-3-03, Buying Up and Buying Down the Guaranty Fee for MBS
C3-4-01, Term-Related Fixed-Rate Mortgage Pooling Parameters
C3-5-01, Creating Weighted-Average ARM MBS
C3-5-02, Calculating the Weighted-Average Pool Accrual Rates for ARM Flex Pools Using a Fixed MBS Margin
C3-5-03, Calculating the Weighted-Average Pool Accrual Rates for ARM Flex Pools Using a Weighted-Average MBS Margin
C3-5-04, Pooling ARMs with a Conversion Option
C3-5-05, Commingling ARMs in MBS
C3-6-01, Parameters for Pooling Loans Into Fannie Majors
C3-7-01, Establishing an MBS Trading Account
C3-7-02, Initiating an MBS Sale
C3-7-03, Making Good Delivery
C3-7-04, Delivering MBS Pool Data and Documents
C3-7-05, Confirming Presettlement Information
C3-7-06, Settling the Trade
C3-7-07, Sale of Fannie Mae Securities to Third Parties
D1-1-01, Lender Quality Control Programs, Plans, and Processes
D1-1-02, Lender Quality Control Staffing and Outsourcing of the Quality Control Process
D1-2-01, Lender Prefunding Quality Control Review Process
D1-3-01, Lender Post-Closing Quality Control Review Process
D1-3-02, Lender Post-Closing Quality Control Review of Approval Conditions, Underwriting Decisions, and Documentation
D1-3-03, Lender Post-Closing Quality Control Review of Data Integrity
D1-3-04, Lender Post-Closing Quality Control Review of Appraisers, Appraisals, Property Data Collectors, and Property Data Collection
D1-3-05, Lender Post-Closing Quality Control Review of Closing Documents
D1-3-06, Lender Post-Closing Quality Control Reporting, Record Retention, and Audit
D2-1-01, General Information on Fannie Mae QC Reviews
D2-1-02, Fannie Mae QC File Request and Submission Requirements
D2-1-03, Outcomes of Fannie Mae QC Reviews
D2-1-04, Identifying and Remedying Origination Defects Under the Remedies Framework
E-1-01, References to Fannie Mae's Website
E-1-02, List of Contacts
E-1-03, List of Lender Contracts
E-2-01, Required Custodial Documents
E-2-02, Suggested Format for Phase I Environmental Hazard Assessments
E-2-03, Revocable Trust Rider (Sample Language)
E-2-04, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts
E-2-05, Servicing Marketplace — Mortgage Loan Servicing Purchase and Sale Agreement
E-2-06, Correcting Errors in eNotes
E-2-07, Description of eNote Header, Footer, and eNote Clause
E-3-01, Acronyms and Glossary of Defined Terms: A
E-3-02, Acronyms and Glossary of Defined Terms: B
E-3-03, Acronyms and Glossary of Defined Terms: C
E-3-04, Acronyms and Glossary of Defined Terms: D
E-3-05, Acronyms and Glossary of Defined Terms: E
E-3-06, Acronyms and Glossary of Defined Terms: F
E-3-07, Acronyms and Glossary of Defined Terms: G
E-3-08, Acronyms and Glossary of Defined Terms: H
E-3-09, Acronyms and Glossary of Defined Terms: I
E-3-10, Acronyms and Glossary of Defined Terms: J
E-3-11, Acronyms and Glossary of Defined Terms: K
E-3-12, Acronyms and Glossary of Defined Terms: L
E-3-13, Acronyms and Glossary of Defined Terms: M
E-3-14, Acronyms and Glossary of Defined Terms: N
E-3-15, Acronyms and Glossary of Defined Terms: O
E-3-16, Acronyms and Glossary of Defined Terms: P
E-3-17, Acronyms and Glossary of Defined Terms: Q
E-3-18, Acronyms and Glossary of Defined Terms: R
E-3-19, Acronyms and Glossary of Defined Terms: S
E-3-20, Acronyms and Glossary of Defined Terms: T
E-3-21, Acronyms and Glossary of Defined Terms: U
E-3-22, Acronyms and Glossary of Defined Terms: V
E-3-23, Acronyms and Glossary of Defined Terms: W
E-3-24, Acronyms and Glossary of Defined Terms: X
E-3-25, Acronyms and Glossary of Defined Terms: Y
E-3-26, Acronyms and Glossary of Defined Terms: Z

What Is Mortgage Assignment vs. Mortgage Assumption?

Mortgage assumption is now rare, while mortgage assignment is quite common.

Photodisc/Photodisc/Getty Images

1. How to Invest in Property With No Money Down
2. What Does It Mean When a Mortgage Matures?
3. How to Assume a Promissory Note

Mortgage assignment, usually involving a mortgage lender, is very different from mortgage assumption, involving a homebuyer. Mortgage assignments occur when the original lender transfers the mortgage loan to a third party. Lenders who sell mortgages, which is most of them, assign their mortgages to others, who become the owners of the loans. Mortgage assumption occurs when a homebuyer assumes the home seller's existing loan, making all future payments. Buyers become the new mortgage borrowers.

Due on Sale Clauses

Most contemporary mortgages include due on sale clauses. This means that if a transfer of ownership occurs in the form of a home sale, the current mortgage must be paid off, as the balance becomes due. Due on sale language eliminates the option for a buyer to assume the mortgage on the home she's buying. Due on sale clauses have little effect on mortgage assignments to buyers or other third parties. Due on sale language helps make mortgage assignments easier, as the loan buyer knows the mortgage will be paid off when the property is sold.

Government Loans

While most mortgage loans are sold and assigned to others, few mortgages are assumable. Federal Housing Administration and Veterans Administration mortgages, commonly called government loans, are the only legally assumable home loans left in the mortgage market. Government loans also may be assigned to third party buyers, as other mortgage loans are. Assuming government loans is not automatic, as the homebuyers must qualify for these mortgages, meeting FHA and VA income and credit guidelines.

Third Parties

While most contemporary mortgage assignments involve lenders selling their loans, borrowers may assign their mortgages, if their loan note language permits, to third parties. Although this is technically a form of mortgage assumption, it differs from traditional legal assumption in that the original borrower who assigned the mortgage remains responsible for the loan balance if the assignee does not make scheduled monthly payments. While both mortgage assignment and assumption involve third parties, the position of mortgage loan buyers and mortgage assignees is legally different.

While rare, novation is more of a hybrid of mortgage assumption and mortgage assignment. When permitted, the mortgage loan is both assumed by and assigned to another borrower. However, the original borrower is no longer responsible for monthly payments or personally liable for the balance of the loan. Legally, novation equals a new obligation, but with the same terms, including interest rate, of the former mortgage loan. Few contemporary mortgage loan notes permit this form of assumption and assignment.

Significance

Until the 1970s, mortgage assumptions were common, while mortgage assignments were rare. After the federal government created mortgage companies Fannie Mae and Freddie Mac and after due on sale clauses became popular, the roles reversed. For the past four decades, few mortgage loans were assumable, while most mortgage loans were sold and assigned to third parties. The contemporary practices benefit lenders but do not help borrowers, particularly when interest rates rise. Lenders reduce their rate risk, shifting most of the risk to mortgage borrowers, since homebuyers cannot assume lower interest rate mortgage loans.

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Assignment: Definition in Finance, How It Works, and Examples

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What Is an Assignment?

Assignment most often refers to one of two definitions in the financial world:

The transfer of an individual's rights or property to another person or business. This concept exists in a variety of business transactions and is often spelled out contractually.
In trading, assignment occurs when an option contract is exercised. The owner of the contract exercises the contract and assigns the option writer to an obligation to complete the requirements of the contract.

Key Takeaways

Assignment is a transfer of rights or property from one party to another.
Options assignments occur when option buyers exercise their rights to a position in a security.
Other examples of assignments can be found in wages, mortgages, and leases.

Uses For Assignments

Assignment refers to the transfer of some or all property rights and obligations associated with an asset, property, contract, or other asset of value. to another entity through a written agreement.

Assignment rights happen every day in many different situations. A payee, like a utility or a merchant, assigns the right to collect payment from a written check to a bank. A merchant can assign the funds from a line of credit to a manufacturing third party that makes a product that the merchant will eventually sell. A trademark owner can transfer, sell, or give another person interest in the trademark or logo. A homeowner who sells their house assigns the deed to the new buyer.

To be effective, an assignment must involve parties with legal capacity, consideration, consent, and legality of the object.

A wage assignment is a forced payment of an obligation by automatic withholding from an employee’s pay. Courts issue wage assignments for people late with child or spousal support, taxes, loans, or other obligations. Money is automatically subtracted from a worker's paycheck without consent if they have a history of nonpayment. For example, a person delinquent on $100 monthly loan payments has a wage assignment deducting the money from their paycheck and sent to the lender. Wage assignments are helpful in paying back long-term debts.

Another instance can be found in a mortgage assignment. This is where a mortgage deed gives a lender interest in a mortgaged property in return for payments received. Lenders often sell mortgages to third parties, such as other lenders. A mortgage assignment document clarifies the assignment of contract and instructs the borrower in making future mortgage payments, and potentially modifies the mortgage terms.

A final example involves a lease assignment. This benefits a relocating tenant wanting to end a lease early or a landlord looking for rent payments to pay creditors. Once the new tenant signs the lease, taking over responsibility for rent payments and other obligations, the previous tenant is released from those responsibilities. In a separate lease assignment, a landlord agrees to pay a creditor through an assignment of rent due under rental property leases. The agreement is used to pay a mortgage lender if the landlord defaults on the loan or files for bankruptcy . Any rental income would then be paid directly to the lender.

Options Assignment

Options can be assigned when a buyer decides to exercise their right to buy (or sell) stock at a particular strike price . The corresponding seller of the option is not determined when a buyer opens an option trade, but only at the time that an option holder decides to exercise their right to buy stock. So an option seller with open positions is matched with the exercising buyer via automated lottery. The randomly selected seller is then assigned to fulfill the buyer's rights. This is known as an option assignment.

Once assigned, the writer (seller) of the option will have the obligation to sell (if a call option ) or buy (if a put option ) the designated number of shares of stock at the agreed-upon price (the strike price). For instance, if the writer sold calls they would be obligated to sell the stock, and the process is often referred to as having the stock called away . For puts, the buyer of the option sells stock (puts stock shares) to the writer in the form of a short-sold position.

Suppose a trader owns 100 call options on company ABC's stock with a strike price of $10 per share. The stock is now trading at $30 and ABC is due to pay a dividend shortly. As a result, the trader exercises the options early and receives 10,000 shares of ABC paid at $10. At the same time, the other side of the long call (the short call) is assigned the contract and must deliver the shares to the long.

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How do I make my monthly U.S. Bank mortgage payment?

Autopay is a convenient way of making your monthly mortgage payments. Once set up, your payments will be automatically deducted every month from your checking or savings account on the date that you choose. We can help you manage automatic payments, whether you’re setting up or changing existing information.

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For the best online banking experience, we recommend logging in at usbank.com .

Choose your mortgage account listed under Accounts on the customer dashboard.
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For the best mobile banking experience, we recommend logging in or downloading the U.S. Bank Mobile App .

If you have a U.S. Bank demand deposit account (DDA), choose View & manage my account .
If you only have a U.S. Bank mortgage, choose View, pay & manage my account .
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Additional information:

Please have your checking account and routing number for this process. Once a checking or savings account is entered for payment, it will be saved in the site. You will not be able to enroll in or modify autopay if the account is past due. This information may be unavailable if the account is past due.

You’ll be notified by mail when the first payment is drawn. If your debit lands on a holiday or weekend, we’ll credit your loan the following business day. Otherwise, payments are posted the same day.

For assistance from a customer service representative, call 800-365-7772 Monday through Friday from 7 a.m. to 8 p.m. CT and Saturday from 8 a.m. to 2 p.m. CT.

Pay by phone

You could choose to make your monthly mortgage payment by phone either through our automated voice response system or with the help of a customer service representative. For payments made by phone, we credit the payment the same day (the next day if made on a weekend or holiday).

Call 800-365-7772 to make a payment by phone. You’ll be asked to provide your checking or savings account number and your bank’s routing number. Your mortgage payment will be electronically drafted from your loan the same day.

Pay by mail

If you choose to pay your monthly mortgage amount by mail, U.S. Bank Home Mortgage will send you a monthly billing statement with a payment slip. Detach the payment slip and mail it back, with your payment, in the enclosed envelope. Include your mortgage loan number on your check.

For overnight deliveries, please send your payment to:

U.S. Bank Home Mortgage ATTN: Payment Processing 3751 Airpark Drive Owensboro, KY 42301

We’ll apply your payment on the day it’s received. We don’t consider the postmark date or adjust for mail delays. Therefore, please allow at least seven business days for mailing. Allow 10 or more days during holidays and other high-volume mailing times, such as tax season.

For a hassle-free payment method, choose autopay. It’s easy to set up, and you could schedule automatic payments without worrying about any checks, stamps or mailing delays.

Branch payments

You can also make your mortgage payments at any U.S Bank branch. Please have your billing statement available when making a payment.

We generally credit any payments made at the branch the same day. However, some branches convert their systems to begin processes for the next day earlier than online, typically around 4 p.m. local time. Branches post any payment made after their conversion time the following business day. Also, some branches do not have the capability of posting a mortgage payment directly. These branches must forward payments to mortgage servicing. These payments may also post the following business day. Your receipt will indicate if your payment won’t be posted until the following business day.

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How can I save on my next mortgage or refinance?

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U.S. Bank mortgage login online banking

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U.S. Bank mortgage login online banking steps

From the customer dashboard, select My accounts , then select My documents .
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Log in to online banking and select your mortgage from the customer dashboard.
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Have additional questions about your mortgage?

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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.

Clients may be eligible for this credit with an existing U.S. Bank first mortgage, a U.S. Bank Smartly Checking account or an existing Gold or Platinum Checking Package. A minimum of $25 is required to open a U.S. Bank Smartly Checking account. For a comprehensive list of account pricing, terms and policies see the Consumer Pricing Information disclosure and the Your Deposit Account Agreement . These documents can be obtained by contacting a U.S. Bank branch or calling 800-872-2657 .

To calculate the U.S. Bank Client Credit, take 0.25% of your new first mortgage loan amount and deduct it from the closing costs. For purchase or refinance transactions, the maximum credit is $1,000. Certain mortgages may not be eligible for stated credits. Offer may not be combined with any other mortgage offers and can only be applied once per property within a 12-month period.

Assignment and Assumption: Single Assignment of Loans | Practical Law

Assignment and Assumption: Single Assignment of Loans

Practical law standard document 2-382-1269 (approx. 12 pages).

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Brandon Allen has lived in Northern Idaho since 2016 with his wife, Stephanie, and their two beautiful daughters. As a Mortgage Loan Officer with Fulcrum Home Loans, Brandon delivers excellence by providing a tailored approach to home loans. By aligning his client’s priorities and goals, with his actions and recommendations, Brandon ensures complete confidence and clarity throughout the financial journey he partners in. Whether serving first time home buyers or experienced investors, Brandon provides second-to-none client experience through transparent communication consistent delivery on his promises. Licensed in Idaho and Washington.

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A mortgage is the Fulcrum point for most American’s finances. It affects many of the financial decisions that a household makes and can ultimately determine the majority of one’s net worth. It is estimated that home equity accounts for over 68% of the average American’s net worth. In other words, owning a home and having a mortgage is a very big deal.

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COMMENTS

Understanding the Assignment of Mortgages: What You Need To Know
The assignment of mortgage needs to include the following: The original information regarding the mortgage. Alternatively, it can include the county recorder office's identification numbers. The borrower's name. The mortgage loan's original amount. The date of the mortgage and when it was recorded.
What Is Assignment Of Mortgage?
An assignment of mortgage is a legal term that refers to the transfer of the security instrument that underlies your mortgage loan − aka your home. When a lender sells the mortgage on, an investor effectively buys the note, and the mortgage is assigned to them at this time. The assignment of mortgage occurs because without a security ...
Understanding How Assignments of Mortgage Work
Mortgages are assigned using a document called an assignment of mortgage. This legally transfers the original lender's interest in the loan to the new company. After doing this, the original lender will no longer receive the payments of principal and interest. However, by assigning the loan the mortgage company will free up capital.
What's the difference between a mortgage assignment and an ...
An assignment transfers all the original mortgagee's interest under the mortgage or deed of trust to the new bank. Generally, the mortgage or deed of trust is recorded shortly after the mortgagors sign it, and, if the mortgage is subsequently transferred, each assignment is recorded in the county land records.
Gaining a comprehensive understanding of mortgage assignment
Mortgage assignment is a common practice used by lenders to better manage their loan portfolios. Lenders might raise funds to offer more loans or issue new mortgages by selling or transferring mortgage loans to other financial organizations. This procedure aids in keeping their portfolios risk-balanced and liquid. 2.
Debt Assignment: How They Work, Considerations and Benefits
Debt assignment is a transfer of debt, and all the associated rights and obligations, from a creditor to a third party (often a debt collector). The company assigning the debt may do so to improve ...
Understanding How Assignments of Mortgage Work
Mortgages are assigned using a document called an assignment of mortgage. This legally transfers the original lender's interest in the loan to the new company. After doing this, the original ...
Assignment of Mortgage Laws and Definition
An assignment of a mortgage refers to an assignment of the note and assignment of the mortgage agreement. Both the note and the mortgage can be assigned. To assign the note and mortgage is to transfer ownership of the note and mortgage. Once the note is assigned, the person to whom it is assigned, the assignee, can collect payment under the ...
Demystifying Mortgage Assignment: What it Means for ...
A mortgage assignment is a financial process in which an existing mortgage is transferred from the current holder to another party. It can occur for various reasons, such as a lender selling the mortgage to another bank or financial institution. Understanding mortgage assignment is essential for both borrowers and lenders, as it impacts the ...
What is an assignment of mortgage and how is it processed?
An Assignment of Mortgage is a process by which you can refinance your mortgage while saving money on mortgage taxes (this process is also known as a CEMA). We do allow assignments on existing credit union mortgages, however, we do not allow assignments on home equity products. The details, including associated fees, can be found below.
What Is MERS For Mortgages?
When a bank or financial institution sells a mortgage, an assignment is prepared and recorded in the appropriate county land records. This assignment is a document that indicates the mortgage has been transferred to a new owner. ... If you owe $100,000 on your mortgage and your home is worth $180,000, you have $80,000 of equity in your home.
Mortgage Assignments
A2-4.1-03, Electronic Records, Signatures, and Transactions. Chapter A2-5, Fannie Mae Trade Name and Trademarks. Chapter A3-2, Compliance With Requirements and Laws. Chapter A3-3, Third-Party Lending Functions and Servicing Arrangements. A3-3-01, Outsourcing of Mortgage Processing and Third-Party Originations.
Assumable Mortgage: What It Is, How It Works, Types, Pros and Cons
Advantages and Disadvantages of Assumable Mortgages. Pros. Rate on the mortgage may be lower than current market rates. May not need to apply for a new mortgage. If seller's home equity is low ...
Assumable Mortgage: What It Is and How It Works
An assumed mortgage opens that door by offering a way to take over a current owner's mortgage — including the repayment period and interest rate. At the end of 2023, more than half of U.S. homeowners had rates under 4% and sites with listings for homes with assumable mortgages currently boast rates as low as 2%.
What Is Mortgage Assignment vs. Mortgage Assumption?
Mortgage assumption is now rare, while mortgage assignment is quite common. Mortgage assignment, usually involving a mortgage lender, is very different from mortgage assumption, involving a ...
Foreclosure Defenses: Is Your Mortgage Properly Assigned?
It endorses the promissory note (signs it over) to the new loan owner. The promissory note owner is the only party with the legal right (called "standing") to collect payment on the debt. Assignment. The seller also prepares an assignment of mortgage to the new entity and, usually, records the assignment in the county records.
Assignment: Definition in Finance, How It Works, and Examples
For example, a person delinquent on $100 monthly loan payments has a wage assignment deducting the money from their paycheck and sent to the lender. Wage assignments are helpful in paying back ...
Mortgage account management
If you're an existing customer with a U.S. Bank first home mortgage loan, a U.S. Bank Smartly™ Checking account or an existing Gold or Platinum Checking Package, you may be eligible for a customer credit on the closing costs of your next mortgage. 1 Take 0.25% of your new first mortgage loan amount and deduct it from the closing costs, up to a maximum of $1,000. 2
Assignment and Assumption: Single Assignment of Loans
A Standard Document for an assignment and assumption of loans and commitments used for assignments between a single assignee and a single assignor in syndicated loan transactions. This Standard Document is typically included as an exhibit to the loan agreement. It is consistent with the form of assignment and assumption published by the Loan Syndications and Trading Association (LSTA).
Brandon Allen
[email protected]. Apply Now. Brandon Allen has lived in Northern Idaho since 2016 with his wife, Stephanie, and their two beautiful daughters. As a Mortgage Loan Officer with Fulcrum Home Loans, Brandon delivers excellence by providing a tailored approach to home loans. By aligning his client's priorities and goals, with his actions ...
Home [a-teamhomeloans.com]
Brandon Allen with Fulcrum Home Loans | NMLS# 1146848 | Company NMLS# 1926444. 208-874-0784 | [email protected]. 110 E Third Street, Moscow, ID 83843. The material found on this website is not from HUD or FHA and has not been approved by HUD or a government agency.
Meet the Team
Brandon Allen with Fulcrum Home Loans | NMLS# 1146848 | Company NMLS# 1926444. 208-874-0784 | [email protected]. 110 E Third Street, Moscow, ID 83843. The material found on this website is not from HUD or FHA and has not been approved by HUD or a government agency.
Fulcrum Home Loans
A mortgage is the Fulcrum point for most American's finances. It affects many of the financial decisions that a household makes and can ultimately determine the majority of one's net worth. It is estimated that home equity accounts for over 68% of the average American's net worth.
US Mortgage Rates Continue to Ease on Expectations of Fed Move
US mortgage rates fell last week to their lowest level since April 2023, prompting potential homebuyers to apply for loans at a faster clip. The contract rate on a 30-year fixed mortgage fell ...

Understanding the Assignment of Mortgages: What You Need To Know

Assignment of Mortgage – The Basics

Home Loan Documents

Using MERS To Track Transfers

Upsolve Member Experiences

Assignment of Mortgage Requirements and Effects

Notice Requirements

Mortgage Terms

Taxes and Insurance

Let's Summarize…

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What Is Assignment of Mortgage: What You Need to Know

What is Assignment of Mortgage?

The Key Parties Involved

Why is Assignment of Mortgage Necessary?

1. Loan Portfolio Management

2. Risk Mitigation

3. Secondary Mortgage Market

The Assignment of Mortgage Process

1. Agreement between Parties

2. Notice to the Borrower

3. Recordation

4. Continuation of Monthly Mortgage Payments

Implications of Mortgage Assignment for Borrowers

1. No Change in Loan Terms

2. Proper Record-Keeping

3. Communication with the New Lender

4. Property Taxes and Insurance

The Role of Mortgage Servicers

Legal Requirements and Regulations

Impact on Credit and Credit Reporting

Assignment of Mortgage vs. Assumption of Mortgage

Impact on Property Taxes and Insurance

Potential Challenges and Disputes

Foreclosure and Default Scenarios

Future Trends and Innovations

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Understanding Mortgage Assignment

Steps in the Mortgage Assignment Process

Notification

Legal Documentation

Critical Points for Borrowers and Lenders

Advantages of Mortgage Assignment for Lenders and Borrowers

For Lenders

Freeing Up Capital

Reducing Risk

For Borrowers

Potential for Better Terms

Continuity of Agreement

Potential Risks and Disadvantages of Mortgage Assignment

Legal Complexities and Potential Disputes

Challenges in Managing Borrower Expectations

Possible Changes in Mortgage Terms

Risks of Dealing with a New Lending Institution

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What is an assignment of mortgage and how is it processed?

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