Welcome to Freddie and Fannie’s Mortgage Shell Game

By Shawn Timothy Newman, J.D.
Adjunct Professor
Saint Martin’s University

Wheres-the-NoteIn common parlance, a mortgage (or Deed of Trust) includes the underlying loan (promissory note) and the security on that loan (mortgage or Deed of Trust). This ignores the fact that the note and mortgage (or DOT) are two separate contracts governed by some different laws and legal principals.

As noted in Powell on Real Property, sec. 37.27 [2] (Michael Allan Wolf ed., LexisNexis Matthew Bender 2010)  Continue reading

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