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Yes i believe that is correct by czeche
But that's a different case. Each applicant gets their highest rated residency that is available to them, but that doesn't mean an applicant can jump someone by having the residency listed first and sometime else using it listed at 5th.
In short, there's no penalty to listing "reach" residencies. It's hard to explain this, but effectively they run an iterative process so the residency gets the highest listed residents who have that residency as their highest listed available residency.