It's not universal. Some places have specific regulations that govern this and so they specifically carve out a weird "ownership but non-ownership" scenario. E.g. mortgages here in South Africa. Other places yes it's in your name but you put it up as collateral on the loan itself, etc etc etc.

Bottom line, the government just makes it obscure and difficult to determine the real dynamics between the two parties, and the weird interaction it may have with existing laws governing theft/ownership.