There is no mention of who invented the Deed of Trust. It is used in some states in the US instead of a mortgage. In a trust deed (also known as Potomac Mortgage), there is a 'transfer of interest' of land quite like a mortgage. Quite like mortgage, the Deed of Trust involves land as a means of security. However there is a difference between mortgage and the Deed of Trust. In the Deed of Trust, there is an agreement among three parties: an impartial trustee, a lender and a borrower. In lieu for a loan of a certain amount from the lender, the borrower maintains legal title to tangible property in the trustee's hands who sustains it for the lender's benefit. The borrower retains equitable title with relation to the possession of the property.