Real Property - Deeds of Trust - Recordation of Assignments

HB 1566 clarifies that the actual holder of a promissory note secured by a deed of trust has full rights under that deed, even if land records list a different holder. It directly affects mortgage lenders, borrowers, and property owners in Maryland by ensuring the true note holder - not just the person recorded as holder - can enforce the deed of trust. The bill amends Maryland law to explicitly state this, preventing confusion during loan assignments or sales. This change ensures the note holder’s rights are protected regardless of land record entries, streamlining property transactions. The law takes effect July 1, 2026.