Subordinations - Frequently Asked Questions

Below are answers to commonly asked customer questions about subordinations.

Q: What do I have to do to complete my subordination?

A: 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. 

 

Q: What is a mortgage subordination?

A: 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.

 

Q: What should my lender do to begin and complete a subordination?

A: Ask your lender to go to the PNC Subordination website. This site is for lender use only.   

www.pnc.com/subordination

 

Q: How long will my subordination take to be completed?

A: 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. 

 

Q: Is there a fee for my subordination?

A: 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.

 

Q: Who can submit a subordination request?

A: Your lender will enter the request via the PNC subordination portal.

 

Q: How can I receive the status of my subordination?

A: 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.