• Bankruptcy Basics
  • Chapter 11 Bankruptcy
  • Chapter 13 Bankruptcy
  • Chapter 7 Bankruptcy
  • Debt Collectors and Consumer Rights
  • Divorce and Bankruptcy
  • Going to Court
  • Property & Exemptions
  • Student Loans
  • Taxes and Bankruptcy
  • Wage Garnishment

Understanding the Assignment of Mortgages: What You Need To Know

3 minute read • Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools, like our bankruptcy filing tool.  Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card.  Explore our free tool

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.

Attorney Todd Carney

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.

Upsolve Member Experiences

Heather Metzger

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

Continue reading and learning!

Successful debtor 1

It's easy to get debt help

Choose one of the options below to get assistance with your debt:

Upsolve app demo

Considering Bankruptcy?

Our free tool has helped 13,684+ families file bankruptcy on their own. We're funded by Harvard University and will never ask you for a credit card or payment.

Private Attorney

Get a free evaluation from an independent law firm.

Learning Center

Research and understand your options with our articles and guides.

Already an Upsolve user?

Bankruptcy Basics ➜

  • What Is Bankruptcy?
  • Every Type of Bankruptcy Explained
  • How To File Bankruptcy for Free: A 10-Step Guide
  • Can I File for Bankruptcy Online?

Chapter 7 Bankruptcy ➜

  • What Are the Pros and Cons of Filing Chapter 7 Bankruptcy?
  • What Is Chapter 7 Bankruptcy & When Should I File?
  • Chapter 7 Means Test Calculator

Wage Garnishment ➜

  • How To Stop Wage Garnishment Immediately

Property & Exemptions ➜

  • What Are Bankruptcy Exemptions?
  • Chapter 7 Bankruptcy: What Can You Keep?
  • Yes! You Can Get a Mortgage After Bankruptcy
  • How Long After Filing Bankruptcy Can I Buy a House?
  • Can I Keep My Car If I File Chapter 7 Bankruptcy?
  • Can I Buy a Car After Bankruptcy?
  • Should I File for Bankruptcy for Credit Card Debt?
  • How Much Debt Do I Need To File for Chapter 7 Bankruptcy?
  • Can I Get Rid of my Medical Bills in Bankruptcy?

Student Loans ➜

  • Can You File Bankruptcy on Student Loans?
  • Can I Discharge Private Student Loans in Bankruptcy?
  • Navigating Financial Aid During and After Bankruptcy: A Step-by-Step Guide
  • Filing Bankruptcy to Deal With Your Student Loan Debt? Here Are 3 Things You Should Know!

Debt Collectors and Consumer Rights ➜

  • 3 Steps To Take if a Debt Collector Sues You
  • How To Deal With Debt Collectors (When You Can’t Pay)

Taxes and Bankruptcy ➜

  • What Happens to My IRS Tax Debt if I File Bankruptcy?
  • What Happens to Your Tax Refund in Bankruptcy

Chapter 13 Bankruptcy ➜

  • Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference?
  • Why is Chapter 13 Probably A Bad Idea?
  • How To File Chapter 13 Bankruptcy: A Step-by-Step Guide
  • What Happens When a Chapter 13 Case Is Dismissed?

Going to Court ➜

  • Do You Have to Go To Court to File Bankruptcy?
  • Telephonic Hearings in Bankruptcy Court

Divorce and Bankruptcy ➜

  • How to File Bankruptcy After a Divorce
  • Chapter 13 and Divorce

Chapter 11 Bankruptcy ➜

  • Chapter 7 vs. Chapter 11 Bankruptcy
  • Reorganizing Your Debt? Chapter 11 or Chapter 13 Bankruptcy Can Help!

State Guides ➜

  • Connecticut
  • District Of Columbia
  • Massachusetts
  • Mississippi
  • New Hampshire
  • North Carolina
  • North Dakota
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • West Virginia

Legal Services Corporation

Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families resolve their debt and fix their credit using free software tools. Our team includes debt experts and engineers who care deeply about making the financial system accessible to everyone. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations.

To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.

assignment of mortgage in ny

Do We Still Need Assignments of Mortgages in New York?

The Court of Appeals recently confirmed that “the note, and not the mortgage, is the dispositive instrument that conveys standing to foreclose under New York law,” and that “the validity of the … assignment of the mortgage” is “irrelevant!”

The case, Aurora Loan Services, LLC v. Taylor , just decided by the Court of Appeals on June 11th 2015, confirms that it is critical for lenders to have possession of the note before commencing a foreclosure, affirming the decision of the Appellate Division 2nd Dept case, Bank of N.Y. v. Silverberg, decided in 2011.

In the Silverberg case, the plaintiff transferred only the mortgage, and the Appellate Division held that the assignment of mortgage was a nullity and that all that mattered was whether the note itself was validly transferred. In this most recent case, however, it was the note that was validly transferred but not the mortgage. The defendant argued that because the mortgage was not transferred, the plaintiff lacked the standing to foreclose. As with the Silverberg case before, the Court rejected this line of argument, holding that the transfer of the note is all that really matters.

Given the Silverberg and Aurora decisions, the question becomes: Why is it still necessary to have assignments of mortgage? The answer is that some courts in New York still require them and will not allow you to foreclose unless all assignments have been obtained and there is no break in the chain of title. In fact, both Kings County and Schenectady County will not allow foreclosure unless all assignments of mortgages have been obtained and recorded!

Accordingly, until the lower courts adapt and cease to require assignments of mortgages, it will remain necessary to obtain them. Should it be impossible to do so in certain specific instances, however, these recently decided cases should enable a lender to obtain an “exception” based upon their possession of the note, and be allowed to foreclose.

Share This Story, Choose Your Platform!

Related posts.

What Actually Happens at a Real Estate Closing?

What Actually Happens at a Real Estate Closing?

After Surrendering in Bankruptcy, Contesting Foreclosure not Allowed

After Surrendering in Bankruptcy, Contesting Foreclosure not Allowed

What is a Home Equity Loan and How Does It Work?

What is a Home Equity Loan and How Does It Work?

Should I Buy a Short Sale?

Should I Buy a Short Sale?

What Is My Home Worth?

What Is My Home Worth?

Section 275 Affidavit (NY) | Practical Law

assignment of mortgage in ny

Section 275 Affidavit (NY)

Practical law standard document w-000-7343  (approx. 10 pages).

Affidavit of No Demand (Mortgage) Deed in Lieu of Foreclosure Affidavit Estate Tax Affidavit (Federal and NY) Fence and Boundary Affidavit FIRPTA Affidavit Heirship Affidavit Judgment Affidavit LLC Affidavit of Title Lost Note Affidavit (Corporation) Lost Note Affidavit (Individual_Lender) Non-Imputation Affidavit NYC HPD Affidavit In Lieu of Registration Statement Owner in Possession Affidavit Purchaser’s-Mortgagor’s Affidavit (Home Equity Theft Protection Act) Shareholders Affidavit Smoke Alarm-Carbon Monoxide Detector Affidavit Smoke Detector Affidavit Surviving Tenant by the Entirety Trust Affidavit Trust Affidavit (Settlor’s Death)

Boundary Line Agreement (requires transfer tax forms) Pledge Agreement LLC Membership Interest

Condominiums

Contract of Sale – Condominium Unit (NYCBA 2015) Contract of Sale – Condominium Apartment Notice of Lien, Unpaid Common Charges (Condominium) Notice of Lien, Unpaid Common Charges (HOA)

Contracts and Related

Assignment of Contract of Sale Contract of Sale – Condominium Unit (NYCBA 2015) Contract of Sale – Cooperative Apartment 7-2001 Contract of Sale – Office, Commerical, and Multi-Family Contract of Sale – Residential (DOC) Contract of Sale – Residential (PDF) Lead Paint Disclosure Statement (Seller) Lead Paint Disclosure Statement (Lessor) Memorandum of Contract Option to Purchase Real Property Property Condition Disclosure Statement

Corps, LLCs, and LPs

Consent of General and Limited Partners (LP) Corporate Resolution to Sell LLC Affidavit of Title Shareholders Affidavit

Administrator’s Deed Bargain and Sale Deed With Covenants Bargain and Sale Deed Without Covenants Executor’s Deed Quitclaim Deed Warranty Deed

Confession of Judgment Affidavit Confession of Judgment Judgment Affidavit Release of Lien of Judgment Satisfaction of Judgment Partial Satisfaction of Judgment

Ground Lease Landlord Consent and Estoppel Memorandum of Lease Subordination and Non-Disturbance Agreement Termination of Recorded Lease

Mechanic’s Liens

Mechanic’s Lien Satisfaction of Mechanic’s Lien

Miscellaneous

Cancel Notice of Pendency (LP) by Stipulation (CPLR 6514(d)) Cancel Notice of Pendency (LP) by Plaintiff Atty Affidavit (CPLR 6514(e)) General Release (Individual) General Release (Corporation) Notice of Pendency (Lis Pendens) Stipulation Discontinuing Action

Mortgage Tax Affidavits

253 Affidavit (Credit Union Converted) Tax Law 253(1-a)(a) 253 Affidavit (Credit Union) Tax Law 253(1-a)(b) 253 Affidavit (Natural Person) 255 Affidavit (Assignment of Leases and Rents) 255 Affidavit (Collateral Mortgage) 255 Affidavit (Consolidation and Extension) 255 Affidavit (Correction Mortgage) 255 Affidavit (Extension-Modification) 255 Affidavit (Mortgage Encumbering RP in More Than One County) 255 Affidavit (Reverse Mortgage) 255 Affidavit (Substitute Mortgage) 255 Affidavit (Wraparound Refinance) 275 Affidavit (Assignment of Mortgage) 339-ee Affidavit (NYC Unit Mtg $500K or More) 339-ee Affidavit (NYC Unit Mtg Less Than $500K) Mtg Tax – 339-ee Worksheet – Commercial Mtg Tax – 339-ee Worksheet – Residential

Mortgages and Related

Allonge Assignment of Leases and Rents Assignment of Mortgage Assignment of Mortgage and Note Building Loan Agreement Building Loan Contract Form 8032 (3-00) Building Loan Mortgage Form 8017 (3-00) Combination Bond and Mortgage Consolidation and Extension Agreement Form 8026 (3-00) First Mortgage Individual or Corporation Lienor’s Estoppel Certificate Lost Note Affidavit (Individual Lender) Lost Note Affidavit (Corporation) Mortgage Note Form 8011 Notice of Lending Owner’s Estoppel Certificate Form 8037 (3-00) Partial Release of Mortgage Satisfaction of Mortgage Splitter Agreement Spreader Agreement Subordinate Mortgage, Individual or Corporation Subordination of Mortgage Termination of Assignment of Leases and Rents

Power of Attorney

New NY Statutory Short Form POA (effective 9-12-2010) New NY Statutory Gifts Rider (effective 9-12-2010) New Affidavit as to POA Being In Full Force Revocation of Power of Attorney

Recording Cover Pages

Cayuga County (must be 8.5 x 14) Orange County (must be 8.5 x 14) Oswego County Putnam County Suffolk County

Transfer Tax and Returns

Westchester PREP Request Form (Stewart) City of Yonkers RPT City of Yonkers Affidavit of Exemption City of Peekskill RPT IT-2663 Nonresident Real Property Estimated Income Tax Payment Form Columbia County Supplemental Return IT-2664-I Instructions (2017) Peconic Bay Region CPF (prior to 4/1/2023)  Note: must be printed on legal size paper (8.5″ x 14″) Peconic Bay Region CPF (after 4/1/2023)  Note: must be printed on legal size paper (8.5″ x 14″) RP-5217 Real Property Transfer Form RP-5217 NYC Real Property Transfer Report Instructions Town of Red Hook CPF Town of Warwick CPF TP-584 (4/13)  Note: Some counties require the TP-584 to be completed on-line TP-584 Instructions (4/13) TP-584-REIT (7-14) TP-584.1 Supplemental Schedules with Instructions TP-592.2 NYS Real Estate Transfer Tax Claim for Refund

UCC’s

UCC1 Financing Statement UCC1Ad Addendum UCC1AP Additional Party UCC1CAd Cooperative Addendum UCC3 Amendment UCC3Ad Amendment Addendum UCC3AP Amendment Additional Party

Privacy Overview

  • TRACK ORDERS

New York Title Abstract Services, Inc.

FORMS FOR AN INDIVIDUAL What type of forms do you require?

ACKNOWLEDGEMENTS

Boundary line documents, decedent related documents, deeds and transfers forms, loan related documents, power of attorney documents, recording cover pages.

     All other counties in New York State generate the cover page internally.

RELEASE AND SATISFACTION DOCUMENTS

The legal forms provided herein are intended for use by attorneys only. New York Title, Abstract Services Inc. assumes no liability for the inappropriate use of said forms by unauthorized individuals, or for any irregularities that may appear therein.

Let us know if you need any assistance: (631) 537-4400 [email protected]

TITLE SERVICES Purchase Refinance Property Intelligence Document Services CEMA Services

FORMS Individual Corporation LLC Estate/Trust Closing Statement

RESOURCE LINKS New York City New York State LI Resources Useful Links Glossary

CONTACT US New York Title Abstract Services, Inc. Phone:  (631) 537-4400 EFax:  (631) 204-6812 [email protected] V-Card Terms of Service Privacy Policy

Mortgage Assignments and the CEMA (Consolidation, Extension and Modification Agreement)

Homebuyers in NYC have grown accustomed to absurdly high sale prices and an unusually long and oftentimes puzzlingly complicated process to get from contract to closing.  They also have to deal with some of the highest closing costs in the country, including the so-called “Mansion Tax,” a 1% tax on the gross purchase price if you spend $1MM or more on a home, which gets you, in most of Manhattan, a nice 1br apartment.  Buyers of condos, townhouses or other types of houses, however, get hit with another tax – the mortgage recording tax, which, in most residential purchases, amounts to 1.8% or 1.925% of the principal amount of the mortgage loan you are borrowing to make the purchase (the former, for loans of $500,000 or lower, and the latter, for loans above $500,000).  This tax only applies to condo and house buyers because condos and houses are considered, in a legal sense, actual real estate, and a loan secured by real estate is called a “mortgage loan” and is recorded in the public land records.  Some buyers of condos, townhouses and houses try to use a mortgage assignment and a CEMA to reduce the mortgage recording tax owed (detailed further below).

Note that when you buy a co-op, you are not buying real estate, but rather (i) shares in a corporation that owns real estate and (ii) a corresponding proprietary lease from that corporation which entitles you to the apartment you are “buying”.  When you take out a loan to purchase a co-op, it is not secured by real estate, but rather the shares in the corporation you are purchasing, and, accordingly, it is not considered a “mortgage loan” in the legal sense, even though it is colloquially referred to as one, and is not subject to the mortgage recording tax.

The mortgage recording tax is assessed on all mortgage loans in New York State.  A lender cannot record a mortgage against a property (and, thus, properly secure its interest in such property) unless the mortgage recording tax is paid.  But, buyers (and their lawyers) are smart, and came up with the CEMA as a way to get around paying a portion of the mortgage recording tax.  The theory behind the CEMA is that, if a seller of a property already has a mortgage on the property for which the mortgage recording tax has already been paid, and their lender assigns that mortgage to the buyer’s lender for consolidation into the buyer’s mortgage, why should the buyer have to pay the tax on that portion of their mortgage?

They should not, but often they do because they don’t get a CEMA.  Let me explain.

If both the seller’s lender and the buyer’s lender agree to the mortgage assignment, then a CEMA will be entered at closing.  The CEMA takes the existing mortgage on the property (for which the mortgage recording tax has already been paid) and consolidates it with a new mortgage from the buyer’s lender for the remainder of the amount the buyer needs to borrow to purchase the property.  The buyer will only need to pay mortgage recording tax on the portion of the mortgage that is not being assigned.  For example, if a buyer needs a $1,000,000 mortgage to buy a property and the seller already has a $600,000 mortgage on the property, if the seller’s bank agrees to assign the mortgage to the buyer’s lender, then the buyer will only have to pay mortgage recording tax on the $400,000 portion of his $1,000,000 mortgage for which mortgage recording tax has not been paid.  In this example, the CEMA will save the buyer $11,550 in closing costs – real money!

But, most of the time, banks do not permit CEMAs to be entered into at closing for home purchases – and there is no good reason for not permitting them.  They literally don’t permit them because they are large national organizations and simply do not understand mortgage assignments because it is unique to the New York market.  It is one of the most absurd things because it is so easy to do and often saves homebuyers tens of thousands of dollars in closing costs!  I just closed an $8.7MM purchase of a gorgeous house in Brooklyn Heights that my client financed with a $5.65MM loan.  There was already a loan on the property for $3.3MM, but his bank (Bank of America) refused to do a CEMA, so my client lost out on savings of $63,525!  Crazy and senseless!

Make Home Buying More Affordable in New York with a CEMA (and a #DigsRebate)

There is a very clear and admirable goal in New York to make home buying more affordable, and we at Digs are at the forefront of that trend, by giving our clients the most generous real estate broker commission rebates in the brokerage community – up to 2% of the purchase price cash back at closing!  For a condo purchase over $1MM with financing, however, without a CEMA, the real estate broker commission rebate will likely not even cover the buyer’s total closing costs, which is completely absurd!  So lenders need to get on board with CEMAs.  Lenders always agree to mortgage assignments on commercial real estate transaction with an existing mortgage on the property, so there is no reason why they cannot join the program with residential loans.

Choose the Right Bank to Finance with

If you are buying a house or a condo with financing, work with Wells Fargo or Citizens Bank.  They both provide great service and do CEMAs.  I would be happy to provide referrals to excellent loan officers there.  Please contact me at (917) 675-0037 or [email protected] for more information.

Comments are closed.

  • Search Search
  • Digs News + Info
  • Market News
  • Uncategorized

Recent Posts

IN THE NEWS

  • Find a Lawyer
  • Ask a Lawyer
  • Research the Law
  • Law Schools
  • Laws & Regs
  • Newsletters
  • Justia Connect
  • Pro Membership
  • Basic Membership
  • Justia Lawyer Directory
  • Platinum Placements
  • Gold Placements
  • Justia Elevate
  • Justia Amplify
  • PPC Management
  • Google Business Profile
  • Social Media
  • Justia Onward Blog

2022 New York Laws RPA - Real Property Actions and Proceedings Article 19 - Discharge or Extinguishment of Encumbrances, Claims and Interests 1921 - Discharge of Mortgage.

(b) The affidavit shall state that:

(i) The affiant is an attorney-at-law and that the affidavit is made on behalf of and at the request of the mortgagor or any person who has acquired title to the mortgaged premises;

(ii) The mortgagor made a proper request of the mortgagee for the execution of the satisfaction of mortgage pursuant to subdivision one of this section;

(iii) The mortgagor has received a payoff statement for the loan secured by the mortgage, and shall annex as evidence a copy of the payoff statement;

(iv) The affiant has ascertained that the mortgagee received payment of the loan in accordance with the payoff statement, and shall annex as evidence, copies of the check negotiated by the mortgagee or documentary evidence of such payment;

(v) The affiant, at least thirty days after the mortgagee received payment, has given the mortgagee written notice together with a copy of the proposed affidavit, delivered by certified or registered mail, return receipt requested, to the attention of the person or department set forth in the payoff statement, of the affiant's intention to execute and record an affidavit in accordance with this section; and

(vi) The mortgagee has not responded in writing to such notification or all requests by the mortgagee for payment have been complied with at least fifteen days prior to the date of the affidavit.

(c) Such affidavit shall identify the mortgagor and the mortgagee, state the date of the mortgage, the liber and page of the land records where the mortgage is recorded and give similar information with respect to any recorded assignment of the mortgage.

(d) The affiant shall attach to the affidavit photostatic copies of the documentary evidence that payment has been received by the mortgagee, including mortgagee's endorsement of any check, and a photostatic copy of the payoff statement and certify each to be a copy of the original document.

(e) Within five days of the filing of such affidavit the register or clerk of every county in whose office said mortgage has been recorded shall give the mortgagee written notice, delivered by certified or registered mail, return receipt requested, to the attention of the person or department set forth in the payoff statement, as annexed to the affidavit filed hereunder, of the filing of such affidavit, which notice shall include the following notice in capital letters: "THIS NOTICE IS MADE UNDER SECTION 1921 OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW. FAILURE TO FILE WITH THIS OFFICE WITHIN THIRTY DAYS OF THIS NOTICE A VERIFIED OBJECTION TO THE DISCHARGE OF THE MORTGAGE DESCRIBED IN THIS NOTICE WILL RESULT IN SUCH MORTGAGE BEING CANCELED AND DISCHARGED OF RECORD." Unless the register or clerk of such county shall receive from the mortgagee, within thirty-five days of the date of filing of such affidavit, a verified objection by the mortgagee to the discharge of said mortgage, the register or clerk shall record the affidavit and supporting documents and mark the mortgage described in the affidavit canceled and discharged of record and such recorded affidavit shall have the same force and effect as a duly executed satisfaction of mortgage recorded in accordance with section three hundred twenty-one of the real property law. If the register or clerk of such county shall receive from the mortgagee, within thirty-five days of the date of filing of such affidavit, a verified objection by the mortgagee to the discharge of said mortgage, the register or clerk shall return the original affidavit and the verified objection to the attorney filing such affidavit without marking the mortgage described in the affidavit canceled or discharged of record. The clerk or register of such county shall additionally transmit a copy of the affidavit and the verified objection to its applicable appellate division of the supreme court, committee on professional standards, for such further proceedings as determined appropriate by such committee.

(f) The county clerk or register shall index the affidavit in the same manner as a satisfaction of mortgage and shall record such instrument upon payment of the same fees as for a satisfaction of mortgage.

(g) (i) Any attorney who prepares an affidavit and negligently causes the affidavit to contain false information shall be liable to the mortgagee for any monetary damages and subject to other applicable sanctions under law.

(ii) Any person who supplies false information for the affidavit shall be liable to the mortgagee for any monetary damages and subject to other applicable sanctions under law.

(h) A banking or other organization having the original or copies thereof, shall furnish, within sixty days of receiving a written request, a copy of the front and reverse sides of a check issued to satisfy the mortgage obligation by such banking or other organization, needed for completion of an affidavit in accordance with this subdivi- sion. 6. Eight days' notice of the application for either of the orders provided for in subdivisions two and three of this section shall be given to the then mortgagee of record and also, if the petition show that there is a mortgage not of record, to such mortgagee. Such notice shall be given in such manner as the court or the judge or justice thereof to whom the petition is presented may direct, and said court or judge or justice may require such longer notice to be given as may seem proper. If sufficient cause be shown the court or judge or justice thereof may issue such order to show cause returnable in less than eight days. 7. Upon the return day of such order to show cause, the court, upon proof of due service thereof and on proof of the identity of the mortgagee and of the person presenting the petition, shall inquire in such manner as it may deem advisable, into the truth of the facts set forth in the petition, and in case it shall appear that said principal sum or any unpaid balance thereof and interest and the said fees allowed by law have been duly paid or tendered but not accepted and said satisfaction of mortgage has been duly presented for execution, or that such tender and presentation could not have been made within this state with due diligence, then, in the event such mortgage is not paid, the court shall make an order directing the sums so tendered, or in a case where such tender could not have been made as aforesaid, directing the principal sum or any unpaid balance thereof, with interest thereon to the date of entry of said order together with all other amounts due thereunder pursuant to subdivision three of this section and the aforesaid fees allowed by law, to be paid to the officer specified by law to hold court funds and moneys deposited in court in the county wherein the application herein is made, and directing and ordering that upon such payment the debt or other obligation secured by the mortgage be canceled and further directing the register or clerk of any and every county in whose office said mortgage shall have been recorded to mark said mortgage canceled and discharged of record upon the production and delivery to such register or clerk of a certified copy of the order and the receipt of such officer, showing that the amount required by said order has been deposited with him, which certified copy of said order and which receipt shall be recorded, filed and indexed by any such register or clerk in the same manner as a certificate of discharge of a mortgage. Said receipt need not be acknowledged to entitle it to be recorded. The court in its discretion, when granting any such order after application therefor pursuant to subdivision two of this section, may award costs and reasonable attorney's fees to the person making the application, in the absence of the showing of a valid reason for the failure or refusal to execute the satisfaction of mortgage and deliver the same, the note and mortgage and any other documents required under subdivision one of this section. The money deposited shall be payable to the mortgagee, his personal representative or assigns, upon an order of the supreme court or county court, directing the payment thereof to him upon such evidence as to his right to receive the same as shall be satisfactory to the court. 8. Wherever any register or clerk shall record any order and receipt as hereinbefore specified, he shall mark the record of said mortgage as follows: "Canceled and discharged by order of the .......................... Court, County of ......................., dated .................. and filed .......................," and thereupon the lien of such mortgage shall be deemed to be discharged and the debt secured thereby shall be deemed to be canceled. Said register or clerk shall be permitted to charge for recording and filing said order and receipt, the same fees to which he is now entitled for recording and filing a certificate of satisfaction of a mortgage. 9. When used in this section:

(a) "Mortgagee" means (i) the current holder of the mortgage of record or the current holder of the mortgage, or (ii) any person to whom payments are required to be made or (iii) their personal representatives, agents, successors, or assigns.

(b) "Attorney-at-law" means any person admitted to practice law in this state and in good standing.

(c) "Payoff statement" means a statement setting forth the unpaid balance of the mortgage, including principal, interest and other charges pursuant to the loan documents, together with a per diem rate for interest accruing after the date to which the unpaid balance has been calculated. The payoff statement furnished by a banking organization or corporate mortgagee shall include a name of an individual employed by such banking organization or corporate mortgagee or department of such banking organization or corporate mortgagee to whom inquiry concerning the payoff statements are to be addressed in addition to the address of the banking organization or corporation for use in connection with the affidavit under subdivision five of this section.

(d) "Banking organization" shall have the same meaning as provided in subdivision eleven of section two of the banking law and shall include any institution chartered or licensed by the United States or any state.

(e) "Note" shall include any written evidence of indebtedness.

Get free summaries of new opinions delivered to your inbox!

  • Bankruptcy Lawyers
  • Business Lawyers
  • Criminal Lawyers
  • Employment Lawyers
  • Estate Planning Lawyers
  • Family Lawyers
  • Personal Injury Lawyers
  • Estate Planning
  • Personal Injury
  • Business Formation
  • Business Operations
  • Intellectual Property
  • International Trade
  • Real Estate
  • Financial Aid
  • Course Outlines
  • Law Journals
  • US Constitution
  • Regulations
  • Supreme Court
  • Circuit Courts
  • District Courts
  • Dockets & Filings
  • State Constitutions
  • State Codes
  • State Case Law
  • Legal Blogs
  • Business Forms
  • Product Recalls
  • Justia Connect Membership
  • Justia Premium Placements
  • Justia Elevate (SEO, Websites)
  • Justia Amplify (PPC, GBP)
  • Testimonials

IMAGES

  1. 17+ type of mortgage

    assignment of mortgage in ny

  2. New York Assignment of Mortgage Package

    assignment of mortgage in ny

  3. ASSIGNMENT OF MORTGAGE

    assignment of mortgage in ny

  4. Fillable Assignment Of Mortgage printable pdf download

    assignment of mortgage in ny

  5. Free Mortgage Assignment Agreement

    assignment of mortgage in ny

  6. New Jersey Sample Assignment Of Mortgage

    assignment of mortgage in ny

VIDEO

  1. How Mortgage Brokers Can Convert More Leads into Sales

  2. How To Use The Bank For Your Next Renovations || Calgary Real Estate Wealth

  3. Uncover The Incredible Secrets Banks Don't Want You To Know! 😱🤫

  4. Become a Federal Loan Officer in All 50 States! No S.A.F.E Exam

  5. Don't Let This Happen! #credit #debt #mortgagepayment #latepayments #homeowner #creditscore

  6. Interviewing Dogs: Mortgage Edition

COMMENTS

  1. New York Assignment and Satisfaction of Mortgage Law

    New York Law. Assignment: An assignment must be in writing and recorded. Demand to Satisfy: Not required. Recording Satisfaction: After full payoff, mortgagee, unless otherwise requested in writing by mortgagor, must execute and acknowledge before a proper officer a satisfaction of mortgage, and thereupon within forty-five days arrange to have ...

  2. PDF ASSIGNMENT OF MORTGAGE AND NOTE

    The bond(s), note(s) and/or obligation(s) secured by the Mortgage (the "Note"), the moneys due and to grow due thereon, with interest as specified therein, and all rights accrued or to accrue under the Mortgage (together with the Mortgage, the "Assigned Rights"). The Assignor has not executed any prior or superior assignment, pledge or ...

  3. New York Consolidated Laws, Real Property Law

    3. Except with respect to the assignment of a mortgage in connection with a transaction described in paragraph (a) of subdivision two of this section, in order to record an assignment of a mortgage there must be set forth in the assignment document or attached thereto and recorded as part thereof a statement under oath signed by the mortgagor or any other party to the transaction having ...

  4. Understanding the Assignment of Mortgages: What You Need To Know

    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 ...

  5. Do We Need Assignments of Mortgages in New York?

    The Court of Appeals recently confirmed that "the note, and not the mortgage, is the dispositive instrument that conveys standing to foreclose under New York law," and that "the validity of the … assignment of the mortgage" is "irrelevant!". The case, Aurora Loan Services, LLC v. Taylor, just decided by the Court of Appeals on June 11th 2015, confirms that it is critical for ...

  6. Assignment of Mortgage (Commercial Real Estate Loan) (NY)

    An assignment of mortgage under New York law used to assign and transfer a mortgage from one lender to another lender. This Standard Document is intended for use with the financing of commercial properties in New York and has integrated notes with important explanations and drafting and negotiating tips for both the assignor and the assignee.

  7. New York Real Property Law § 418 (2022)

    § 418. Assignment of mortgage, lease, or other lien or charge. The holder of any mortgage, lease, or other lien or charge on registered property, in order to transfer the same or any part thereof, shall execute an assignment of the whole or any part thereof; and upon such assignment being filed in the office of the registrar, the registrar shall enter in the title book a memorial of such ...

  8. 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.

  9. PDF ASSIGNMENT OF MORTGAGE

    TOGETHER with the bond or note or obligation described in said mortgage, and the moneys due and to grow due thereon with the interest; TO HAVE AND TO HOLD the same unto the assignee and to the successors, legal representatives and assigns of the assignee forever. IN WITNESS WHEREOF, the assignor has duly executed this assignment the ...

  10. Section 275 Affidavit (NY)

    A Section 275 affidavit for use in a residential or commercial mortgage assignment transaction in New York. This Standard Document affirms that, under Section 275 of the New York Real Property Law, the mortgage continues to secure a bona fide obligation and that the assignee is not a nominee of the mortgagor. This Standard Document contains integrated notes and drafting tips.

  11. Assignment of Mortgage with Covenant

    Jointly prepared by the Real Property Section of the New York State Bar Association, the New York State Land Title Association, the ... — Assignment of Mortgage with Covenant — Individual or Corporation (single sheet) Author: Suzanne Schirtzer Last modified by: Suzanne Schirtzer Created Date: 11/2/2010 12:48:00 AM

  12. 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.

  13. Assignment of Mortgage Laws and Definition

    Failure to observe mortgage assignment procedure can be used as a defense by a homeowner in a foreclosure proceeding. Before a bank can institute a foreclosure proceeding, the bank must record the assignment of the note. ... He is admitted to practice law in the State of New York and before the State Bar of Georgia. Daniel is also admitted to ...

  14. 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 ...

  15. New York Real Property Law Section 321

    1. The recording officer shall mark on the record of a mortgage the word "discharged" when there is presented to him a certificate or certificates signed as hereinafter provided, and acknowledged or proved and certified in like manner as to entitle a conveyance to be recorded, specifying that the mortgage has been paid or otherwise ...

  16. NY Forms

    Mortgage Note Form 8011 Notice of Lending Owner's Estoppel Certificate Form 8037 (3-00) Partial Release of Mortgage Satisfaction of Mortgage Splitter Agreement Spreader Agreement Subordinate Mortgage, Individual or Corporation Subordination of Mortgage Termination of Assignment of Leases and Rents. Power of Attorney. New NY Statutory Short ...

  17. 2022 New York Laws RPP

    2022 New York Laws RPP - Real Property Article 8 - Conveyances and Mortgages 275 - Certificate of Discharge of Mortgage Required. ... With respect to the assignment of a mortgage in connection with a transaction described in paragraph (a) of subdivision two of this section, such assignment shall contain the following statement: "This assignment ...

  18. FORMS

    Assignment of Note and Mortgage - ... New York Title, Abstract Services Inc. assumes no liability for the inappropriate use of said forms by unauthorized individuals, or for any irregularities that may appear therein. Let us know if you need any assistance: (631) 537-4400 ...

  19. Mortgage Assignment and the CEMA

    I would be happy to provide referrals to excellent loan officers there. Please contact me at (917) 675-0037 or [email protected] for more information. In addition to reducing closing costs w/a broker commission rebate from Digs, homebuyers in NYC can reduce closing costs with a mortgage assignment and CEMA.

  20. Free Mortgage Assignment Agreement

    Create Document. Updated February 16, 2024. A mortgage assignment agreement is between a holder of debt (assignor) and a party that assumes the debt (assignee). Under most mortgages, the borrower has no rights to object. Since a mortgage is centered upon a specific borrower's credit profile, it is difficult to replace with a new borrower.

  21. ASSIGNMENT OF MORTGAGE

    Multistate Mortgage Assignment -Single Family - Fannie Mae Uniform Instrument Form 3741 07/2021 Page 1 of 4 . Recording Requested By/Return To: ASSIGNMENT OF MORTGAGE [To be used only where Fannie Mae is the assignee.] For Value Received, the undersigned holder of a Mortgage (herein "Assignor") whose address is

  22. New York Real Property Actions and Proceedings Law § 1921 (2022

    2022 New York Laws RPA - Real Property Actions and Proceedings Article 19 - Discharge or Extinguishment of Encumbrances, Claims and Interests 1921 ... page of the land records where the mortgage is recorded and give similar information with respect to any recorded assignment of the mortgage. (d) The affiant shall attach to the affidavit ...

  23. PDF ASSIGNMENT OF MORTGAGE

    For purposes of the New York mortgage recording tax, this transfer is a secondary market mortgage which is neither due and payable nor paid in full as those terms are used in section 275 of the New York Real Property Law, and is not a taxable transaction. IN WITNESS WHEREOF, the assignor has duly executed this assignment the ____ day of

  24. How Is Alimony Calculated in New York (NY)?

    Paying or receiving alimony can affect your financial planning.And how alimony is calculated in New York depends on the state's specific formula. The formula uses the parties' incomes and salary, as well as whether or not child support is being paid to perform a calculation.Other factors may also figure in to this number, including the age and health of the partners, the length of the ...