I'm trying to subordinate a 2nd but the holder needs a 20% priciple reduction to get approval. Ever heard of this?

I agree with Phil. It is a money grab and it is true that the holder of the second is in command, but a complaint filed against them with their regulator can do wonders. A second with XXXX lender had a very specific "No subordinations of non-owner occupied properties" clause. They declined the borrower's request for subordination. A sternly worded letter to them with a copy to the CFPB reminding them that they were impeding a HARP refinance and the subordination was approved in two days. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Yes, I have but are you hearing this from the loan officer doing your home or did you talk to the 2nd themselves. If its from your LO then you need to call the 2nd and talk to a manager and get the real perspective. Also, if it is coming from the LO then it may be that the guidelines for his investors do not allow a high enough CLTV to get the loan done. If that is the case then simply talk to another LOCAL broker in your area. Stay away from the big banks and the National Lenders.

the holder of the 2nd really holds the cards. The only thing the customer could do is complain to their regulator that they are inhibiting the HARP program.