Subordinations - Frequently Asked Questions
Below are answers to commonly asked customer questions about subordinations.
PNC provides a website for your lender to use to process the request. The site provides all the tools your lender needs for the entire subordination process. Your lender will provide us with all of the information and documentation that we require to analyze and make a decision.
When a home is used as collateral for a loan, the lender places a lien on the property by recording a document known as a mortgage, deed of trust, or security deed. If there is more than one lien on a property at the same time, the priority of these liens is typically determined by the order in which the lien documents were recorded.
For example: when you have a Mortgage and Home Equity Loan you actually have two separate loans that are both secured by the collateral in your home at the same time. Generally, your mortgage is assigned the senior, first lien position, while the home equity loan receives the junior, second lien position.
When a customer refinances a first lien mortgage and there are junior liens secured by the property, the refinancing lender will likely require the junior lienholders to agree that the new mortgage will have senior lien priority over the junior liens, just like the first mortgage being refinanced does. When junior lienholders agree to remain in lower priority lien positions, they’re subordinating their liens to the lien for the new first mortgage. Ultimately, the junior lienholders will have the same lien priority they did before the refinance. In order to subordinate a lien, a subordination agreement document is executed and recorded.
PNC strives to complete all subordination requests in 2-3 weeks of receipt of all required documentation. Your lender will receive instructions regarding needed documentation, questions, etc.
PNC will charge you a fee of up to $250 depending on state and contractual limitations. Fees are only charged for approved subordinations.
Your lender will discuss fee payment options with you.
Your lender will enter the request via the PNC subordination portal.
Your lender receives regular updates regarding the progress of your subordination. Please speak with your lender.
If you are a lender looking to start the subordination submission process, visit our Subordination Request page.