Seller's last assignment on 1st position note not recorded?

[Bob Malecki]

I'm working with a seller on FCI Exchange who has not recorded his assignment and says: "We don't record our position until it is under contract. FCI can record our assignment at time of close." This does not seem right, shouldn't the assignment, made earlier this year be recorded for this seller to have the right to sell the note? What am I missing?