Why would the primary or any superior lien holder care about junior lien holders? As long as he knows his place in line, the loan is supposedly backed by the asset. So as long as the asset doesn’t decline in value, the lien holder is secure. If it does decline in value, thats where the primary lien holder gets into trouble.
I suppose there is an argument to be made that overall a borrower becomes more risky as he takes on more debt. The primary lien holder might like to know about other debts, in order to assess his overall risk, but he is still first in line for the asset should the borrower default.
