Which term describes the lender's ability to sell the mortgage at any time to free up invested funds?

The correct term that describes the lender's ability to sell the mortgage at any time to free up invested funds is the right of assignment. This concept allows the lender to transfer their interest in the mortgage and its associated rights to another party, effectively enabling them to liquidate that mortgage and obtain capital without having to wait for the borrower to pay off the loan.

The right of assignment is a common practice in the lending industry, allowing for increased liquidity in the mortgage market. When lenders assign a mortgage, they can manage their portfolios more effectively and respond to changes in market conditions or funding needs. This process does not change the terms of the loan for the borrower; instead, it simply shifts the lender's role to a new entity.

In contrast, options like a free and clear cash sale refer to a property being sold without any financial encumbrances, not directly related to the operation of selling a mortgage. Subject to a mortgage sale describes a situation where a buyer takes over a property and the existing mortgage remains in place, which does not directly address the lender’s ability to sell the mortgage. Loan assumption involves a buyer taking over the seller’s mortgage payments, which can also complicate the lender's flexibility to sell the mortgage itself.

Thus, the right of