Washington Mutual Subordination Checklist
- A subordination agreement is a contract between lenders.contract 20309 image by pablo from Fotolia.com
A subordination agreement is used when making one mortgage inferior to another mortgage. It is a legal document that allows one party to claim junior to another party. This is most commonly used in mortgage situations. For example, a homeowner takes out two mortgages, known as a "first" and a "second." The second mortgage lender would most likely subordinate to the first mortgage lender. In the case of Washington Mutual, there is a subordination checklist of items required when Washington Mutual considers subordinating to another lender. - A completed subordination request form is the first item needed for Washington Mutual to consider subordination.
- Copy of existing note or Home Equity Line of Credit (HELOC) agreement.
- Credit investigation worksheet or loan approval summary indicating approval of the subordination of the existing consumer loan.
- Copy of the preliminary title report or, if applicable, the recorded deed of trust. This document must show title insurance or state the amount that the new loan will be insured. This document will also verify schedule of mortgage, liens and verification of taxes paid.
- Copy of the appraisal. The appraisal must have been done within the past 120 days.
- Completed loan application, also known as the Uniform Underwriting and Transmittal Summary Form 1008.
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