I had my husbands name removed from the deed but it is still on the mortgage loan papers because he is in a nursing home, is this legal.

How did you have his name removed from the deed? You can't just remove someone from a deed, they have to agree to the transfer of the property.

And yes it is legal for someone to be listed as a borrower on a mortgage loan without being on the deed, but its unusual. Most mortgages have a due on sale clause that would allow the lender to call the loan if the property changes title.