Recast Eligible Loan Types and General Guidelines

Eligible loan types (if Servicer permits)

 Conventional Fannie Mae

• Conventional Freddie Mac 

Non-eligible loan types

  • FHA
  • RHS
  • USDA
  • VA

General Recast Guidelines

  • Written request is required
  • A minimum amount (typically $10,000.00 or 10% of the unpaid principal balance) may be required
  • A recast fee may be assessed, and this varies by Servicer
  • Servicers may limit the number of recasts that may be performed during the life of the loan
  • No prior modifications to the loan
  • Loans cannot be delinquent on payments or in an active Bankruptcy status
  • Interest-Only loan types are not eligible
  • Adjustable Rate Mortgage (ARM) loans must be reviewed for a Recast no later than six-months before the first scheduled interest rate change

Important Information about Recasts

  • Cannot be performed during the Fairway interim servicing period - loan must be transferred to new servicer
  • Customers may have a waiting before becoming eligible to apply for a recast - varies by servicer
  • A recast is a formal loan modification requiring documents to be produced, mailed, and signed by customers and returned to the servicer

Not all servicers permit recasts.  

Click here for Recast Guidelines - Non-Retained Servicing

Click here for Recast Guidelines - Retained Servicing

Click here for Recast Guidelines - Jumbo Loans

Click here for Investor/Loan Types Not Eligible to Recast

Please do not distribute this recast guidelines to customers or external third-parties - For Internal Use Only

DISCLAIMER: The servicers/subservicers contained within this information do not include all servicers/subservicers to which Fairway transfers loans.  These are some of our higher volume partners.   Fairway does not own or influence this information and cannot confirm its accuracy on a day-to-day basis.  This information is owned and controlled by the referenced Servicer and/or Subservicer. This information may change at any time and Fairway (as a third party) would not be advised of changes.  This information is gathered as a courtesy by periodically contacting these servicers and subservicers and asking that they voluntarily share their current process/policy specific to these activities.   Decisions and requirements may vary from servicer to servicer based on processes and interpretations.

This communication is for internal use to provide you with information to assist your customers.  This is not approved to post on social media.