Rental Property Leases
Leases that predate the mortgage could have a superior claim to the mortgage. Furthermore, state laws may differ on the relationship between an unrecorded lease and a subsequent mortgage. The lender is responsible for ensuring clear title and first lien enforceability in accordance with A2-2-07, Life-of-Loan Representations and Warranties.
For additional information, see B2-1.5-03, Legal Requirements.