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hi everyone welcome back to ask the instructor presented by campus mortgage todays question is when is a subordination agreement required great question as a senior underwriter here are my thoughts a subordination agreement is required on a refinance when the customer has other mortgages not being paid off and closed with the new loan the lender requires to be in first lien position on the title to the property the lender for the second mortgage must approve and provide the subordination agreement the second mortgage lender will require an application to include terms of the new loan and appraisal then they will provide the subordination agreement to be filed by the escrow company handling our loan closing this concludes our one minute video as always dont forget to download our course catalog at campusmortgage.org