Visitors download/print this page as your step-by-steep instructions on how to complete a subordination request with the City of National City and the National City Housing Authority. 

Subordination Overview

REQUIRED DOCUMENTATION

After reviewing the conditions of a subordination request below send the non-refundable check based on your request to the address listed below . If you have questions, contact us.  Forward the items and confirmation your check has been submitted/deposited by the City and the required documentation below to the National City Housing Authority at Housing@nationalcityca.gov. Multifamily developments please reference the processing timeline below.

*Label documents by number using an abbreviation of document names listed below. DO NOT use your own naming conventions.  Due to limited staffing, staff will ask you to resubmit your file if instructions are not followed.

1.  A written request from the lender for a rate and term refinance with the borrower’s authorization to release information form.

2.  A letter signed by the borrower explaining the purpose of the refinance.

3.  Copy of all pages of the loan application (1003) signed by the borrower.

4.  Copy of the Preliminary Title Report.

5.  Certified copy of the escrow instructions referencing the new lender, showing vesting, and the new loan amount. If no escrow is involved in the transaction, a statement from the new lender is required listing the new loan amount, exact vesting for borrower, and name of the lender exactly as it will appear on the loan documents.

6. Copy of Title Insurance.

7.  Copy of the Estimated Settlement Statement

8.  Pay-off statement from the existing first trust deed lien holder.

9.  Copy of the lender’s Underwriting Transmittal Summary (1008), clearly showing the loan has been approved, the loan amount, interest rate, term of the loan, and the principal and interest payments. The new first trust deed loan must be a fixed rate loan, fully amortized over the life of the loan.

SUBORDINATION FEES

Reminder, payments must be submitted before the subordination is processed. The payment must include this subordination cover letter template. All fees are listed under the City-wide fee schedule update.  Fees include: 

*Subject to staff hourly rates
*Subject to Third Party Consultant Fees
*Subject to Third Party Attorney Fees
*Expedited Fee 150% of the Fee (based on staff availability)
*Multifamily Properties (contact Housing@nationalcityca.gov)

In an effort for the National City Housing Authority to full recover costs for services the fees with an asterisk have been added with the Fee Schedule (City-wide) Effective: August 6, 2025.  

Payment can be made in person at City Hall or by mail. When making the payment include the Name of borrower(s) name and address.

City of National City
Attn: Housing Authority
1243 National City Blvd.
National City, CA 91950

FEE SCHEDULE AND UPDATES

All matters relating to the above are subject to the City's new Fee Schedule Effective: August 6, 2025.  

Note: City offices are closed on Fridays, Federal holidays, and the last two weeks of the calendar year.

Upon receipt of a complete package staff will review the documentation and pull the file from the offsite location. Staff will draft the documents and may request more information, if necessary, then go through an internal review process. If approved, the lender will be notified of any contingencies.

ATTENTION MULTIFAMILY DEVELOPMENTS
All multifamily subordination requests are required to be approved by the City Council and will take approximately 4-5 months to complete. Multifamily developments should notify staff as soon as possible if a subordination request is being considered. 

LENDER/ESCROW

Please be advised that incomplete files will be returned unprocessed and are subject to additional fees listed under staff time in the City-wide fee schedule above before the subordination is released. Missing information and/or missing documents constitute an incomplete file and will be returned unprocessed. Please be sure to submit a “complete” package to avoid delays in the process

 The process below is aligned with City Council Policy 904. 

Conditions of Subordination:

A. Subordination of the City of National City’s loan in favor of a new loan in the amount of the current balance of the original senior loan plus reasonable costs of refinancing is acceptable as long as the purpose of the refinance is to lessen the borrower’s monthly financial obligations (debt service) for housing costs, to reduce both the term and interest rate of a loan when the new total payment (principal, interest, taxes, insurance, and homeowner’s association fees) does not exceed 35% of the borrowers total gross monthly income, or when a senior lien becomes due and payable.

B. No subordination will be approved which provides cash or equity being taken from the property (unless the cash is being used to pay reasonable closing costs or to remediate code violations at the property).

C. The City of National City’s loan must be recorded in the same position as when it was originally recorded.

D. City staff will review the new loan application and underwriter’s summary, estimated buyer’s settlement charges and title report to verify compliance with these criteria prior to execution of a subordination document by City.

E. City staff will submit their review and recommendation to the National City Housing Authority Director for final approval or denial of the subordination request.

F. Staff will prepare an annual report to the City Council, City Manager, and Director of Finance that provides information on the new mortgage principal balance, rate, and term that the City assistance loan subordinated to.

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