Husband wants a loan secured by his residence. He is NOT on the deed, however, his wife is willing to sign the deed of trust/mortgage as collateral even though she will not be obligated on the loan as a co-borrower or a co-maker. I am trying to think if there are any regulatory concerns in using her primary residence as collateral on a loan when she isn't benefiting from the proceeds of the loan. Any thoughts???

This kind of situation happens all the time. Actually, I can take a mortgage out on your house if you'll sign the deed/mortgage as collateral.

I'm betting the husband owns a business so he's got the income. The home is in the wife's name so it can't be attached if the husband's business runs into trouble.

Don't worry. You're ok to proceed.

The close personal relationship between husband and wife is viewed as sufficient legal consideration for such a transaction. She has a vested interest in his concerns and financial needs.

thank you both