Escrow & Title
A subordination agreement in a mortgage transaction means:
AThe lender agrees to accept a lower interest rate
BA senior lienholder agrees to allow a junior lien to take priority✓ Correct
CThe borrower agrees to pay off the mortgage early
DThe title company waives the title search requirement
Explanation
A subordination agreement is a document where a senior lienholder voluntarily agrees to lower their lien's priority, allowing another lien (typically a new first mortgage) to take priority.
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