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A subordination agreement is a recorded document that changes the priority ranking of mortgages within public records, adhering to the principle of "first in time, first in right." For instance, if a homeowner has a small first mortgage with Bank of America (BOA) and seeks a larger mortgage from Wells Fargo, BOA must agree to surrender its priority position. This is accomplished through a subordination agreement, a simple one-page document executed by BOA. Once recorded, this agreement grants legal priority to the new Wells Fargo mortgage, moving BOA’s loan to a second position in the mortgage hierarchy.