Escrow & Title
In New York, a 'mortgage assignment' occurs when:
AThe borrower transfers their rights and obligations under the mortgage to another person
BThe lender transfers the mortgage and the right to receive payments to another party (commonly used in the secondary mortgage market)✓ Correct
CThe court assigns a mortgage to a receiver in a foreclosure action
DThe title company assigns the title insurance policy to the new lender
Explanation
A mortgage assignment occurs when the original lender (assignor) transfers their rights under the mortgage (and typically the underlying note) to another party (assignee), such as another bank or a mortgage-backed securities trust. Assignments are a fundamental part of the secondary mortgage market and must be recorded to provide notice of the change in ownership.
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