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