FDIC Calls for Consideration of Junior Liens

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NMLS Mortgage Call Report: Definitions and Instructions. Subordinate Lien A mortgage loan that is junior or second to first lien loans including but not limited to home equity, second mortgage, down payment or closing assistance programs UPB Unpaid Principal Balance YSP Yield Spread Premium. NOTES:

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FIL-36-2019 Reduced Reporting in Call Reports for covered depository. fil-7 -2018 CRA Consideration for Community Development Activities in the U.S. for Loan and Lease Losses: Residential Mortgages Secured by Junior Liens.

junior lien or mortgage. Refers to the priority of payment if a property must be liquidated to satisfy the debts against it.The first recorded lien or mortgage will be paid first out of sale proceeds,up to the entire amount of the debt,including principal,interests,legal fees,and expenses.If there is any money remaining,junior lienholders (which include junior mortgages) will be paid in full.

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On January 31, 2012, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the national credit union administration and the Office of the Comptroller of the Currency (collectively, the agencies) issued Interagency Supervisory Guidance on Allowance for Loan and Lease Losses (ALLL) Estimation Practices for Loans and Lines of Credit Secured by Junior.

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