Question	Answer
Form Name	Suntrust Subordination
Form Length	22 pages
Fillable?	Yes
Fillable fields	91
Avg. time to fill out	23 min 42 sec
Other names	suntrust bank subordination department phone number, suntrust subordination acknowledgement and agreement, sun trust subordination acknowledgement and agreement, suntrust bank subordination requirements

In This Section This section contains the following topics.
Overview	2
Summary	2
Related Bulletins	2
Subordination of SunTrust Combo Second and EZ Two Mortgage Loans	3
General	3
Eligible Occupancy/ Property Types	4
Ineligible Occupancy/ Property Types	4
New First Mortgage Requirements	4
Existing Combo and EZ Two Second Mortgage Requirements	5
Geographic Restrictions	5
Maximum TLTV	5
Underwriting Requirements	6
General	6
Declining Markets Guidelines	6
Maximum Number of Financed Properties	6
Appraisal Documentation	6
Procedures for Subordination Request	7
Subordination Agreement Requirements	10
Subordination of SunTrust Equity Line and Equity Loans	11
General	11
Service Levels	11
Ineligible Occupancy/ Property Types	12
Geographic Restrictions	12
Maximum TLTV/HTLTV	12
Underwriting Requirements	13
General	13
Declining Markets	13
Maximum Number of Financed Properties	14
Income Documentation	14
Qualifying Ratio and Payment Guidelines	14
Appraisal Documentation	15
Modifications to Existing Equity Lines and Equity Loans	15
Procedures for Subordination Request	16
Automatic Subordination Process for Virginia Properties	18
General	18
Requirements for the Automated Process	18
Procedures for Subordinations of Virginia Properties	19
Title Insurance Requirements	20
Automatic Subordination Process for Texas Properties	21
General	21
Requirements for the Automated Process	21
Procedures for Subordinations of Texas Properties	22

Section 1.21		October 18, 2013
Subordination of SunTrust Second Mortgages		Page 1 of 22
Broker Seller Guide

General	Related bulletins are provided below in PDF format. To view the list of published bulletins,
	select the applicable year below.
	•	2013
	•	2012
	•	2011
	•	2010
	•	2009

General	• Existing SunTrust Combo and EZ Two second mortgage loans that are not being paid
	off with the proceeds of the new first mortgage are eligible for subordination in
	accordance with the guidelines outlined in this document.
	Note: In all cases where an existing SunTrust Combo or EZ Two second mortgage lien
	is not being paid off with the proceeds of the new first mortgage, the second lien MUST
	remain in second lien position.
	• The existing SunTrust Combo and EZ Two second mortgage MUST be subordinated
	behind a NEW SunTrust first mortgage. The existing SunTrust Combo and EZ Two
	second mortgage CANNOT be subordinated behind a “non-SunTrust” first mortgage
	loan.
	Notes:
	• SunTrust Combo second mortgage loans are identified by a ten (10) digit loan
	number.
	• The EZ Two second mortgage is also assigned a ten (10) digit loan number.
	• The new first mortgage product must allow for the subordination of an existing SunTrust
	second lien.
	Reference: See the “New First Mortgage Requirements” subtopic subsequently
	presented in this document for additional information regarding new first mortgage
	product restrictions.
	• Additionally, the new LTV/TLTV must meet the more restrictive of the specific new first
	mortgage guidelines or the guidelines outlined in this document.
	Reference: See the applicable first mortgage product description for secondary
	financing guidelines.
	• Any loans subject to a SunTrust Combo or EZ Two Second Mortgage subordination
	must be submitted to SunTrust for underwriting and approval.
	• SunTrust Mortgage, Inc. (i.e., SunTrust underwriter or contract MI underwriter on the
	behalf of SunTrust) must approve the subordination request at the same time the new
	first mortgage is approved.
	• A subordination agreement is required to assure the second lien remains in second lien
	position.
	Notes:
	• For existing SunTrust Combo and EZ Two second mortgages, the subordination
	agreement is drafted by the closing attorney/settlement agent.
	• The subordination agreement is executed at the closing of the new first mortgage
	and is recorded with the first mortgage documents.

	Continued on next page

Eligible	The following occupancy/property types are eligible for subordination:
Occupancy/	•
Property Types	•	1-4 unit properties,
	•	primary residences,
	•	second homes,
	•	investment properties,
	• leasehold properties (excluding Georgia Power leaseholds),
	•	modular housing,
	• properties in excess of 10 acres,
	• warrantable condominiums, including condominium conversions, and
	•	warrantable PUDs.

Ineligible	The following occupancy/property types are ineligible for subordination:
Occupancy/	•
Property Types	•	condotels,
	•	cooperatives,
	•	Georgia Power leaseholds,
	•	manufactured housing,

Existing	The existing Combo or EZ Two second must be current and cannot have any 30-day late
Combo and EZ	payments within the last 12 months.
Two Second
Mortgage
Requirements

Geographic	References:
Restrictions	• See the applicable new first mortgage product description and Section 1.11: Geographic
	State Restrictions of the Broker Seller Guide for specific geographic restrictions that may
	apply.
	• If the subject property is located in the state of Virginia, see the “Automatic Subordination
	Process for Virginia Properties” topic subsequently presented in this document for
	information on the state of Virginia’s automatic subordination procedures.
	• If the subject property is located in the state of Texas, see the “Automatic Subordination
	Process for Texas Properties” topic subsequently presented in this document for
	information on the state of Texas’ automatic subordination procedures.

Underwriting	General
Requirements	• Unless otherwise published in this document, borrowers must meet all of the guidelines
	for secondary financing for the new first mortgage product [including, but not limited to
	minimum credit score, maximum debt-to-income (DTI) ratio, maximum LTV/TLTV, AUS
	requirements, etc.].
	Reference: See the applicable first mortgage product description for secondary
	financing guidelines.
	• Third lien positions are NOT acceptable.

	Reference: See Section 1.17: SunTrust Mortgage Declining Market Guidelines of the
	Broker Seller Guide for additional information.
	Maximum Number of Financed Properties
	Reference: See Section 1.20: Maximum Number of Financed Properties and Borrower
	Exposure of the Broker Seller Guide for guidelines.
	Note: The maximum total exposure is $2.5 million dollars on all SunTrust balance sheet
	(Portfolio) loan products (INCLUDING any existing SunTrust Bank or SunTrust Mortgage
	seconds being subordinated).

Appraisal	• A full appraisal (i.e. form 1004/70, form 1025/72 etc.) is required.
Documentation	• The new appraisal must be dated within 120 days at the time of underwriting.
	• Fannie Mae’s Property Inspection Waiver (PIW), Freddie Mac’s Property Inspection
	Alternative (PIA), Freddie Mac Form 2070, Freddie Mac Form 2055, and automated
	valuation models (AVMs) are NOT acceptable.
	•

	Continued on next page

	Step	Action
	1 (cont.)	• If the Combo or EZ Two loan being subordinated is a MERS (Mortgage
		Electronic Registration System) loan, the subordination agreement must
		be prepared in the name of MERS.
		• The settlement agent must insert the following verbiage in the
		Subordination Agreement:
		• "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a
		separate corporation that is acting solely as a nominee for Lender
		and Lender’s successors and assigns. MERS is organized and
		existing under the laws of Delaware, and has a mailing address of
		P.O. Box 2026, Flint, MI 48501-2026, and/or a street address of 1901
		E. Voorhees Street, Suite C, Danville, IL 61834. The MERS
		telephone number is (888) 679-MERS. FOR PURPOSES OF
		RECORDING THIS DOCUMENT MERS IS THE MORTGAGEE OF
		RECORD.
		Note: SunTrust Mortgage, Inc will NOT subordinate to a 3rd lien position.


		Continued on next page

	Step			Action
	3			• Once the subordination agreement has been executed at closing, the
				closing attorney/settlement agent should include the recorded
				Subordination Agreement in the closed loan package that is sent back to
				SunTrust at the following address:
				SunTrust Mortgage
				1001 Semmes Avenue
				3rd Floor
				Mail Code RVW-5043
				Attn: Final Docs
				Richmond, VA 23224
				Note: A copy of the executed Subordination Agreement must be retained in
				the first mortgage loan file.


Subordination	• The		subordination agreement must contain the following information when being
Agreement	reviewed by the SunTrust Wholesale Branch for approval:
Requirements	•	Names of the parties
		• Business addresses are currently optional
	• Description of the subject property (legal description is preferred; however, the
		address is acceptable)
	• Identification of the mortgage or trust deed to be subordinated:
		•		Names of parties
		•		Date of execution
		• Reference to book and pages of recordation
	• Identification of encumbrance(s) (legal claim to a property) to be superior in priority
	•	Statement of consideration:
		• Inducement to lender to loan money
		•		Payment of Money
		• Other, but should make clear that some consideration was given
	• Terms of subordination of the loan (optional).
	• Covenant of validity of mortgage or trust deed to be subordinated (optional)
	• Cancellation of subordination provision in mortgage or trust deed (optional)
	• Words indicating binding effect
	•	Date of Agreement
	• Signatures of borrowers and lender
	•	Attestation
	•	Acknowledgements (Notary)
	• The language in the document must clearly indicate that the subordination pertains to

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