It is not unusual for underwriters to require a copy of the promissory Note in conjunction with the loan approval process. If you have a Gem of a client who happens to be organized and keeps handy copies of their loan documents then you will be free sailing. Otherwise, you’ll need to obtain a copy of the Note or Line of Credit Agreement from the subordinating lender.
Regardless of who the subordinating lender is for your transaction, most lenders require written authorization from the borrower for any third party to obtain a copy of the Note.
As a function of our work, we automatically provide our customers with an authorization form for the borrowers to sign authorizing the release of this or any other document required in connection with producing the Subordination.
-Nationwide Subordinations
Don’t put yourself in a pickle after you have received your Subordination by realizing that underwriting needs a copy of the Note and without it you cannot close your transaction. Be pro-active and ask your underwriter right away if they will need it. Many times the requirement for a copy of the Note shows on the lender Commitment Letter so take the time to review it (we do as part of our pre-submittal audit).
