• Why do I have to provide a 1003/1008, Credit Report or Verification of Mortgage when this requirement was not in the Subordination Guidelines I received when I initially submitted the request?
• What must be included in the Preliminary Title Report?
• What is an Indemnification letter?
• What must be included on the Credit Report?
• How do I get a VOM?
• What is a complete subordination request?
• What is an incomplete subordination request?
• Do I have to fill out the subordination worksheet?
• Where can I get a copy of the original Note and/or a copy of the original mortgage?
• What is a Note?
• May I use an appraisal that is over 1 year old?
• May a drive-by appraisal be submitted?
• Must I supply a credit report if my request is a streamline?
• What is a Rate Approval Sheet?
• Must I supply a Subordination Agreement to be executed?

• What is your mailing address?
• What do I do when I need changes to an already approved Subordination Agreement?
• What do I do if I do not know who the new Lender is and/or what the new loan amount will be?
• May I fund the loan prior to receiving the Subordination Agreement?
• Are all forms the same?
• My request for Subordination was declined. What do I do when I want to resubmit the request?

• I have a stack of old subordination guidelines at my office. May I still use them?
• What is the highest amount the LTV and/or CLTV can increase for the subordination request?
• Is it ok to increase the new loan amount by the closing costs?
• What if the cash out is to pay down the Line of Credit or second loan?
• May I modify the Line of Credit?
• May delinquent taxes be paid at the time of closing?
• My request was declined, but my underwriting rules would approve it. Why won’t you approve my request?
• My request was declined due to the LTV increase. May I modify the line of credit in order for my request to be approved?

• May I fax in my request?
• May I fax the forms straight from the site?

• Can my request be rushed?
• What is the turn around time for Subordination Requests?
• Why do some requests take longer than other requests?

• Can the fee be waived?
• May I pay with a personal check?
• To whom do I make the check payable?
• May I include the Subordination fee with my mortgage payment?

• What does “LTV” mean?
• What does “CLTV” mean?
• What is a “streamline” request?

Why do I have to provide a 1003/1008, Credit Report or Verification of Mortgage when this requirement was not in the Subordination Guidelines I received when I initially submitted the request?
The Subordination Guidelines you received may be outdated. We service the loan based on the guidelines issued by the investor of your loan. Those investor guidelines require that specific items must be submitted. You may have already submitted some of these items, but your request can only be processed upon receipt of all required items. You can visit our website at http://subordination.recontrustco.com to obtain the current subordination guidelines specific to your loan.

What must be included in the Preliminary Title Report?
The Preliminary Title Report must list complete Mortgage/Deed of Trust information, including: Lender's names, loan amount, and recording information. If the report lists other liens or judgments, we also require proof submitted with your request that the liens or judgments will be removed prior to the funding of the loan, or we must receive an Indemnification letter with respect to each lien or judgment that will not be removed.

What is an Indemnification letter?
An Indemnification letter is a contract where you agree to pay the holder of the loan for any loss it may incur if a lien has not been removed as an exception to coverage in the title policy (or commitment to insure). It insures the lender against loss caused by a title defect.

What must be included on the Credit Report?
The credit report must list the payment history for the last 12 months for the current first Mortgage. If this information is not on the credit report, or the borrower's mortgage is less than 12 months old, a VERIFICATION OF MORTGAGE ("VOM") or Verification of Rent (“VOR”) must be submitted with the request.

How do I get a VOM?
You should contact the current lender of the loan and request a Verification of Mortgage that indicates the current payment history of the loan.

What is a complete subordination request?
A complete subordination request is one that contains all the documents listed under “required items” on the first page of the request worksheet.

What is an incomplete subordination request?
An incomplete subordination request is one that does not contain all the documents listed under “required items” on the first page of the request form. It may also include an incomplete or unsigned worksheet.

Do I have to fill out the subordination worksheet?
Yes. The Subordination Worksheet must be completely and accurately filled out and signed. If not, it can delay the processing of your request.

Where can I get a copy of the original Note and/or a copy of the original mortgage for my home equity loan?
Please contact your Customer Service for assistance.

What is a Note?
A Note is like a formal I.O.U. It evidences the debt that is secured by your mortgage or deed of trust and indicates how the debt will be repaid.

May I use an appraisal that is over 1 year old?
No. All appraisals must be dated within one year of the submission of the complete subordination request.

May a drive-by appraisal be submitted?
Yes, as long as the value of the property is listed.

Must I supply a credit report if my request is a streamline?
Yes. If a credit report is listed in the subordination guidelines, it must be submitted with the request. If one is not provided, you must indicate that one will not be provided and the investor of the loan will order one. This could create a delay in the processing of the request.

What is a Rate Approval Sheet?
A Rate Approval Sheet shows what rate the borrower qualifies for and lists the terms of the new loan.

Must I supply a Subordination Agreement to be executed?
Certain states require a specific form to be used for subordination. If required, the specific form will be indicated in the Subordination Guidelines on the website. You need to supply the Subordination Agreement as it is listed in the Subordination Guidelines. Once we have approved the subordination agreement, we may require you to execute the agreement. DO NOT EXECUTE THE AGREEMENT UNTIL THE SUBORDINATION REQUEST HAS BEEN APPROVED.

What do I do when I need changes to an already approved Subordination Agreement?
If the document needs changes within three weeks of approval, you must advise us in writing of any changes and mail the following items to the address shown below.

Items to be submitted:

• Make check made payable to ReconTrust Company * Note: The fee shall not be paid by the borrower! We will reject any request accompanied by a check drawn by the borrower to pay this fee.
• If “Lender” or the “dollar amount” is changing, please provide a copy of the new note or rate approval indicating the changes.
• A letter indicating any other changes needed and supporting documentation.
• Please provide a prepaid overnight air package addressed to the receiver of the executed document. If shipping instructions or overnight package are not provided, the executed document will be returned by regular mail.

Note: This request is only valid for those approved requests to other third party lenders. A revised Subordination Agreement will be prepared if this revised request is received within 3 weeks of original approval. After 3 weeks, a new Subordination Request must be submitted.

It will take a minimum of five (5) business days to send you a revised Agreement. Incomplete information or incomplete packages will delay the estimated timeframe. We are sorry but fax requests cannot be accepted.

Mailing Address:
Subordination Department
2380 Performance Dr. Bldg D,
RGV-D7-225
Richardson, TX 75082

What do I do if I do not know who the new lender is and/or what the new loan amount will be?
It is very important to know who the new Lender is and/or the new loan amount because the lender name and the loan amount are set forth on the Subordination Agreement. Changes to the Subordination Agreement after approval may incur extra fees and delay your closing of the new loan.

May I fund the loan prior to receiving the Subordination Agreement?
No. Submitting a Subordination Request does not guaranty the request will be approved.

Are all forms the same?
No. Depending on the loan type and the answers provided on the website, a customized form is given to you for your particular request. If the request options have changed or you are requesting subordination for another loan, you must again use the website to generate the correct form for your request.

My request for Subordination was declined. What do I do when I want to resubmit the request?
You should refer to the declination letter provided to you when the request was declined. It offers suggestions as to what you might be able to provide to obtain approval for a subsequent request.

What is the highest amount the LTV and/or CLTV can increase for the subordination request?
As each loan’s LTV and CLTV are different, this cannot be determined until we receive a request. The general guideline is the new loan’s Loan to Value (“LTV”) and the Combined Loan to Value (“CLTV”) must be equal to or less than the original LTV and CLTV.

Is it ok to increase the new loan amount by the closing costs?
The general guideline is that new loan’s LTV must be equal to or less than the original first lien’s LTV.

What if the cash out is to pay down the Line of Credit or second loan?
The general guideline is the new loan’s LTV must be equal to or less than the original first lien’s LTV.

May I modify the Line of Credit?
To modify a Line of Credit, contact your Customer Service for assistance. Modifying Lines of Credit will raise or lower the CLTV only and will not involve the Subordination of the lien.

May delinquent taxes be paid at the time of closing?
Yes. They must appear on the Settlement Statement as items to be paid at closing.

My request was declined, but my underwriting rules would approve it. Why won’t you approve my request?
Your loan was sold to an investor that issued guidelines to follow in connection with a request to subordinate it's lien to a new intended first lien. If these guidelines are not met, the request is declined.

My request was declined due to an increase in the LTV. May I modify the line of credit in order for my request to be approved?
LTV is the percentage derived from the first lien amount divided by the current property value. CLTV is the percentage derived from the total of a first and second loan divided by the current property value. As the request was not declined based on the CLTV, modifying the line of credit will not lower the LTV.

May I fax in my request?
No. Fax copies can be blurred, causing delays in the processing of the request.

May I fax the forms straight from the site?
No.

What is the turn around time for Subordination Requests?
The current turn around time is 10 business days but can take as long as 15 business days after receipt of a complete packages.

Why do some requests take longer than other requests?
Subordination requests must be approved by the investor, thus causing a delay in processing. Some investors may also require other items to be submitted or conditions be met before a request can be approved.

May I pay with a personal check?
No. The fee is not to be paid by the borrower! We will reject any packages that include a check drawn by our borrower.

To whom do I make the check payable?
Checks are to be made out to ReconTrust Company.

May I include the Subordination fee with my mortgage payment?
No. The subordination fee must be sent separately from mortgage payments. They must be submitted with the complete subordination request and shall not be paid by the borrower.

What does “CLTV” mean? “CLTV” means Combined Loan to Value. CLTV is the percentage derived from the total of a first and second loan divided by the current property value.

What is a “streamline” request? In terms of a subordination request, a “streamline” request is one that does not require a new appraisal to be submitted with the request. The requestor is relying on the appraised value of the property when the second loan was originated. However, if the borrower is taking cash out on the new loan, a new appraisal may be needed to satisfy the investor’s guidelines. The general guideline is that the new loan’s LTV must be equal to or less than the original first lien’s LTV.