Final answer:
The question explores whether FSA chattel security can be subordinated to help borrowers get additional credit, which can indeed be the case. This process allows one creditor to take a secondary position in repayment, which can make it easier for a borrower to secure additional loans.
Step-by-step explanation:
The question asks whether a subordination of FSA chattel security can be considered to allow a borrower who has previously received a debt write down to obtain needed credit from another lender. The concept of subordination involves one creditor agreeing to be paid after other creditors from the same collateral in case of debtor default, which can sometimes increase the borrower's chance of securing additional financing. In the context of the Farm Service Agency (FSA), particularly regarding chattel security, this can indeed occur to facilitate additional credit opportunities for the borrower.
Although this specific scenario is not directly tied to the broader context of mortgage loan securitization or the issuance of subprime loans such as NINJA loans, it's essential to understand that lending institutions may adjust their lending practices based on whether they intend to keep the loan on their books or sell it off as part of a securitized bundle of loans. This concept affects how lenders approach risk and the scrutiny they apply to borrowers, ultimately impacting the terms and availability of credit for borrowers.