Bulletin: MU2009007

Dear Associates:

It has come to our attention that deeds of trust in Maryland and the District of Columbia are being recorded listing Stewart Title Guaranty Company (Stewart) and/or its employees, officers or representatives as trustee. Recall that the role of a trustee in a security instrument is to take title to the property and enforce the powers of sale contained therein (as applicable). Therefore, all Stewart issuing agents are prohibited from inserting the name of Stewart, its employees, officers or representatives without prior written consent. Under Maryland Annotated Code, Real Property Article, Section 4-101, and D.C. Code § 42-801, et seq., you must always list a trustee in the body of the deed of trust in order for it to be a valid encumbrance. Fortunately, both Maryland and the District of Columbia have very few limitations as to who may be named and appointed as a trustee within a deed of trust.

Under Maryland Annotated Code, Real Property Article, Section 7-105, a trustee under a deed or other instrument may be an individual or an entity and does not need to be a Maryland Resident (see Maryland Rule 14-202). However, only a "natural person" as defined in the Code is qualified to foreclose on those instruments and the substitution of trustees is commonplace.

Should you receive a deed of trust that does not contain a trustee, we suggest that you immediately contact the lender and require that they designate an appropriate party.

If you have questions relating to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.

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