What is the primary purpose of assigning a mortgage?

The primary purpose of assigning a mortgage is to document the transfer of the mortgage from one lender to another. This process is essential in the lending industry, as it provides a clear and legally recognized record of who holds the mortgage debt. When a mortgage is assigned, the new lender takes over the rights to collect payments and manage the loan, which can happen for various reasons, such as selling the mortgage as an asset or changing loan servicers.

This documentation is crucial for maintaining transparency and ensuring that all parties involved are aware of who currently owns the mortgage. It helps protect the borrower and the lender by creating a legally binding record that can be referenced in the future.

Other choices do not align with the primary purpose of mortgage assignments. For instance, forgiving the debt contradicts the nature of a mortgage, which is a secured debt. Eliminating liens on the property is an entirely different process, often related to paying off loans rather than transferring them. Lastly, decreasing interest rates for the borrower is not a function of the assignment itself; rather, changes in interest rates can occur due to market conditions or refinancing, not as a result of who holds the mortgage.