Finance
In Wyoming, a 'subordination agreement' in lending means:
AA junior lienholder agrees to maintain or move to a lower priority position to allow a new first mortgage✓ Correct
BThe borrower agrees to reduce their outstanding balance
CThe property is subordinated to federal tax liens
DThe lender agrees to subordinate their interest to the HOA
Explanation
A subordination agreement allows a lienholder (often a second mortgage holder) to voluntarily agree that their lien will remain subordinate to a new first mortgage. This is often required when a homeowner refinances their first mortgage but has an existing second mortgage.
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