What is Subordination?

If you are refinancing your first mortgage and do not want to pay off your current second mortgage or pay off and close your Home Equity Line of Credit, you must request Subordination from American First. To request Subordination, the following items must be submitted (incomplete packages will not be processed):

  • Written request to Subordinate from borrower (signed & dated).
  • Copy of Credit Application (1003).
  • Property Appraisal (complete with photos), HVE, or AVM if HARP.
  • Preliminary Title Report (current).
  • Income Verification (paystubs/W-2's).
  • Lender's Approval Letter and 1008 (must include new financing terms).
  • Copy of credit report (current).
  • Prepared Subordination Agreement. For an additional charge of $25.00, American First can complete the subordination on the lender's behalf.
  • $350.00 check payable to "American First Credit Union"
  • Return overnight envelope, including a completed return air bill slip.

Please mail these items to the address listed below. Your request will be processed within 7-10 business days. If this is a rush, please add $25.00. Turnaround will then be 3-5 business days.

If you have any questions, please call 800.290.1112, ext. 5285.

American First Credit Union
ATTN: Real Estate Subordination Department
700 N. Harbor Blvd.
La Habra, CA 90631