Subordination
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Definition
Subordination is an agreement about lien priority. It is not the subordinate lien itself. A second mortgage or junior lien is the claim; subordination is the agreement that keeps or places that claim behind another lien.
In plain English
When a first mortgage is refinanced, a junior lien may have to agree to stay in second place. That agreement is subordination or resubordination. The first lien, the subordinate lien, and the second mortgage are claims on the property. Subordination is the priority agreement among those claims.
Technical definition
Fannie Mae Selling Guide B2-1.2-04 is PRIMARY for recorded resubordination when a junior lien remains through a refinance. State recording and enforceability rules vary. This is not legal advice.
Why it matters
Refinance files treat the junior lien and the subordination agreement as the same paper. They are not.
Related terms
Sources reviewed
Subordinate Financing
Source reviewedSeptember 7, 2026
Important note
Subordination is an agreement about lien priority, not the subordinate lien itself. State recording and enforceability rules vary. This is not legal advice.
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