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Roger, Lawyer
Category: Real Estate Law
Satisfied Customers: 30895
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Im a loan originator with not a whole lot of experience in

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I'm a loan originator with not a whole lot of experience in Maryland, but was reviewing a closing package today and saw the deed of trust referenced a "trustee" I'm not accustomed to seeing this on PA mortgages, is this normal for a Maryland mortgage to show a specified person as the trustee?

Roger : Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney. Thanks for your question. I'll be glad to assist.
Roger : Yes, most deeds of trust have a trustee, who is a person designated to act on behalf of the bank in administering the mortgage. This is usually an attorney.

Ok, so each investor would designate their own trustee then? I was confused because I pulled up another DOT that showed a different trustee for a different MD loan we closed with another investor, but it sounds like this is correct.

Roger : No, the bank designates a trustee, and the deed of trust actually conveys the interest to a designated third party, called a trustee, who holds the title as a surety for the loan.
Roger : The trustee’s primary function is to hold and maintain a property title for the borrower and the lender for the duration of the loan. Therefore, it is the trustee who retains factual ownership and control of the property in question, not the lender. The lender does have a claim to the title, however, and the trustee must transfer ownership of the property if the lender’s claim ever activates - - such as the borrower defaulting.
Roger : The trustee would be different for every lender, and a lender could have several different people designated as a trustee - - the only real requirement for being a trustee is that he/she must be a third party.

Ok, got it, thanks for your help!

Roger : No problem. Thanks for the question, and please let me know if you need anything else.
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