RLA, that doesn’t really make much sense. Without the junior lien the odds of default are lower on the senior lien. So, as the senior lienholder, wouldn’t you just rather have no junior lienholder at all? In other words, wouldn’t you rather just have lower odds of a default period? And if the borrower does, in fact, default, the fact that there’s a junior lienholder that’s also interested in recovering their principal doesn’t really get me very excited. In fact, it’s just one more party that wants their money that I might have to deal with in some way.
