CRAM ARCADE Open App

A borrower wants to refinance but keep their existing HELOC. The HELOC lender must sign what document?

Loan Origination Activities · 27% of the SAFE exammedium

Show the answer and explanation

Correct answer: A subordination agreement

When a borrower refinances their first mortgage, the HELOC lender must sign a subordination agreement to maintain second-lien position behind the new first mortgage. Without this, the HELOC could move to first position.

Drill 2,078 more questions like this, free

CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.

Start studying free

More Loan Origination Activities practice questions

Free practice by category

Loan Origination Activities set Browse all Loan Origination Activities questions Mixed practice set Full question bank