No, though they both relate to collateral — the asset backing your loan. When you initially enter into a mortgage contract, with hypothecation, you’re telling the lender that originates your loan it can take back the property if you don’t make your payments. However, mortgages are bought and sold on the secondary market all the time, so your loan might become the possession of a different lender. While the assignment changes and you make payments to a different company, the terms of your loan remain the same. It simply means that a different company can take possession of the property if you don’t make your payments.