We make auto loans and attach the consumer's home as secondary or incidental collateral. (Consumers sometimes request this for tax purposes).

We currently use the car note and show the property as secondary collateral. This won't work in the future because the payment schedule is the type used for the auto loan rather than the mortgage secured loan.

On the other hand, the mortgage note does not have anything to reference the auto which is what we really rely on as our collateral).

Does anyone else do this type of loan?
If so, what type of note and TIL are you planning to use?

Wolters Kluwer is our form vendor and does not provide a specific note and TIL combo for this loan type.

If the loan is secured by a dwelling or real property you will have to follow the required disclosures of 226.18(s).

We use WK also. Do your state specific, or universal, notes not have a section for you to reference separate security agreements?

We use the universal multistate fixed rate note Form MN-1.

Under section 10 (Uniform secured note) it states:
"In addition to the protections given under the note, a Mortgage, a Deed of Trust or a Security Deed dated the same day as the note protects the Note Holder from possible losses which might result if I do not keep the promises made in this note................


I do not see anything that would cover a security instrument for an automobile. The note states that the mortgage or deed are the security instruments.