FAQs

What is a subordinated lien or subordination?

A subordinate lien is an item on your title that takes precedence over any other liens you may have on your property. If you were to run into financial trouble, the lien in the first position on your title has the right to be paid off first. Every other lien is subordinate to the first one in terms of being paid off.

Pennymac requires that our lien is held in the first position. This will mean that other liens will need to be moved into a subordinate position. This often adds several weeks to your loan process. Speak to your Mortgage Success Team to learn more.