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A subordination agreement is a recorded document that allows the transfer of mortgage priority within public records, where mortgages are ranked by their recording time. For instance, if a homeowner with a small balance first mortgage from Bank of America (BOA) wants a new, larger mortgage from Wells Fargo, BOA must surrender its priority position. This is accomplished through a subordination agreement, which is a one-page document executed by BOA. Once recorded, the agreement grants legal priority to the new Wells Fargo first mortgage, moving BOA to a second position in terms of priority.