Guidelines and Application

Subordination Guidelines and Application

In order to make an informed decision as to whether the URA is willing to postpone our

mortgage or judgement lien in favor of another lender, we need the following

information:

• Subordination application (Mortgage Subordination Request) signed by all

borrowers

• Completed application form with all pertinent information included

• Copy of current appraisal (only if required by lender). Total loan amounts cannot

exceed appraised value.

The Mortgage Subordination Request must be completed and signed by you (the

borrower.)

See Borrower Beware! to get the facts on home equity, mortgage refinancing, and debt

equity loans.

You will need Adobe Acrobat (free download) to view and print these documents.

After you review the Borrower Beware document, if you wish to proceed, we will

require the following information from the lending institution or you:

• Mortgagee clause

• Closing Disclosure or HUD 101 Settlement Sheet or Good Faith Estimate

• First mortgage payoff letter

• Home improvement estimates

• Commitment letter from the lending institution confirming the loan terms.

All property taxes must be current or be brought current at time of loan approval. No

cash out is permitted.

As soon as all necessary information is received, we will inform you of our decision. If

we agree to a subordination, you will be asked at that time to provide the

subordination agreement document for the URA to sign and notarize.

Please note that subordinations are done as a service to you, the borrower, and we

are not obligated to do so if it will jeopardize our loan security.

Last Revised 7.28.2021

BORROWER BEWARE

Get the Facts on Home Equity, Mortgage Refinancing, and Debt Consolidation Loans

Every day, more and more Urban Redevelopment Authority of Pittsburgh (URA) loan customers receive

letters or phone calls from companies offering home equity loans, mortgage refinancing, and bill

consolidation loans. Some of the offers seem too good to be true; with lower monthly payments, you can

buy a new car, take a vacation or put a swimming pool in the backyard.

The truth is some of these offers can cost you thousands of dollars.

Know the facts: Lenders make their money from fees and interest. They will sell you on lower monthly

payments. You should ask four questions:

1. What fees do you charge?

2. How much are the fees?

3. What is the interest rate?

4. How long will it take me to pay off the loan?

Lenders may ask the URA to subordinate your URA loan to their loan so that they would be paid first if you

become unable to pay all your bills.

Generally, the URA will subordinate their loans** if you will receive a lower interest rate or shorter loan

term AND payments on your taxes and URA loans are up-to-date.

However, the URA will not subordinate loans** if the new loan is for:

Purchase of a Car, Boat, Truck

Bill Consolidation Loans

Education Costs

Pay off Credit Card Debt

Vacation

Personal Items

Investments

Luxury Items

Cash Out

The URA strives to protect its loan customers and the funds available to continue its programs. Please call

the URA at 412-255-6600 (fax: 412-255-6617) to discuss the offer you have been given. The URA will only

talk to you - We do not accept phone calls from lenders.

**These are general guidelines. Each request for subordination is reviewed on a case by case basis.

If requesting loan subordination, please complete the Mortgage Subordination Request Form and return

via e-mail (to [email protected]) or mail to:

Urban Redevelopment Authority of Pittsburgh

ATTN: Performance and Compliance Department

412 Boulevard of the Allies

Pittsburgh, PA 15219

Fax: 412-255-6617

Last Revised 7.28.2021

MORTGAGE SUBORDINATION REQUEST FORM

BORROWER: _________________________________________________________________

PROPERTY ADDRESS: __________________________________________________________

TYPE OF LOAN REQUESTED - PLEASE SELECT THOSE THAT APPLY:

REFINANCE: _______________________________________________________

(FIRST MORTGAGE REFINANCE ONLY FOR A LOWER INTEREST RATE)

ORIGINAL LENDER: ____________________________________________________________

ORIGINAL 1ST MORTGAGE AMOUNT: $____________________________________________

ORIGINAL 1ST MORTGAGE BALANCE: $________________INTEREST RATE: ________%

REFINANCE & HOME IMPROVEMENTS: __________________________________

IMPROVEMENTS: Briefly describe work to be done and attach estimates

_____________________________________________________________________________

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TOTAL AMOUNT OF NEW LOAN: $_________________________________________

NEW INTEREST RATE: ___________%

FIRST MORTGAGE BALANCE: $______________________ INTEREST RATE________%

HOME IMPROVEMENT AMOUNT: $__________________

TOTAL AMOUNT OF NEW LOAN: $___________________ INTEREST RATE________%

*Note: Contractor estimates and/or receipts must be provided. The URA reserves the right

to inspect any and all home improvements made upon completion.

Last Revised 7.28.2021

LOAN CONSOLIDATION INFORMATION: __________________________________________

NAME: _______________________________BALANCE: __________________RATE: _______%

TOTAL $_____________________RATE: _______%

REASON FOR LOAN:

_____________________________________________________________________________

Please sign below and print your name under your signature.

I have completed the above-referenced information to the best of my knowledge.

______________________________________ ___________________________________

Borrower Date

______________________________________ ___________________________________

Co-borrower Date

_____________________________________ ___________________________________

Your home phone # Your work #

_____________________________________________________________________________

Finance Company Name

_____________________________________________________________________________

Contact Person at Finance Company

_________________________________ ____________________________________

Finance Company Phone # Fax #

Please return this completed form via e-mail (to [email protected]) or mail to:

Urban Redevelopment Authority of Pittsburgh

ATTN: Performance and Compliance Department

412 Boulevard of the Allies

Pittsburgh, PA 15219

Fax: 412-255-6617

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Last Revised 7.28.2021