What is referred to when the ownership of your mortgage is transferred from one entity to another?

The correct answer is the term "Assignment," which specifically refers to the transfer of ownership of a mortgage or deed of trust from one entity, such as a lender, to another. In this context, the original lender (assignor) transfers its rights and interests related to the mortgage to another lender or financial institution (assignee). This process is quite common in the banking and real estate industries; it allows lenders to manage their portfolios and make secondary market transactions based on financial conditions and business strategies.

Through assignment, the new entity takes over the servicing of the loan and is responsible for collecting payments and managing the relationship with the borrower. Importantly, this transfer does not change the terms of the mortgage for the borrower; they will still need to make payments as outlined in their original agreement.

Modification, on the other hand, involves altering the terms of the mortgage, such as changing the interest rate or extending the loan term, which does not apply to ownership transfer. Assumption refers to a situation where a new borrower takes over the responsibilities of an existing mortgage with the original lender's consent, which is also different from ownership transfer. Transfer is a more general term and does not specifically capture the legal implications of a mortgage ownership change.