by 
The Curious Bag
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A deed of trust is the modern-day mortgage. The deed gives your mortgage lender a security interest in your home. Mortgage lenders often sell mortgage loans to other lenders, and when they do that, they also assign their rights in the deed of trust to the new lender.
Process
You get a mortgage loan from Money Bank, for example. Money Bank requests that you sign a deed of trust, which you do. Three months later, Money Bank sells your mortgage to Investor Bank, at which time Money Bank assigns the deed of trust to Investor Bank.
Function
The purpose of the assignment of deed of trust is to give the new lender the same security interest in your property as the original lender held.
Time Frame
Your mortgage loan and deed of trust can be assigned at any time after you close on the loan. In fact, it is likely that your mortgage and deed of trust will be assigned several times during the life of the loan.
Significance
As a homeowner, you should not care at all if the mortgage loan and deed of trust are assigned to a new bank or lender. Your payment terms remain exactly the same, except for maybe the address where you send your check each month.
Benefits
Assignments allow mortgage lenders to buy and sell mortgage loans freely without fear of losing priority or security interest. In a roundabout way, this freedom to assign results in lower mortgage rates for borrowers.
Source:
Nolo's Encyclopedia of Everyday Law; Shae Irving, JD and Nolo Editors, 2008
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