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A subordination agreement is a recorded document that allows a mortgage lender to transfer the priority of their mortgage in public records. Mortgages are ranked by priority, typically "first in time, first in right." For example, if a homeowner with a small balance on a Bank of America (BOA) first mortgage wants to take out a larger mortgage from Wells Fargo, BOA must relinquish its priority position. This is accomplished through a subordination agreement, which is a one-page document executed by BOA. Once recorded, this agreement gives legal priority to the new Wells Fargo mortgage, moving BOA's mortgage to a second position.