Recast Guidelines - Jumbo Loans

DISCLAIMER:  This chart does not include all correspondent/jumbo programs.  These are some of our higher volume partners.  Fairway does not own or influence this information and cannot confirm accuracy of recast options and requirements on a day-to-day basis.


This recast information is for internal use to provide you with information to assist your customers.  Do not provide this chart directly to customers, and this is not approved to post on social media.


There is no guarantee a servicer's/subservicer's recast guidelines will remain the same after the origination of the loan.  


The recast option and the associated requirements are solely owned and controlled by the referenced new (transferee) servicer and/or subservicer.  Their policies may change at any time and Fairway (as a third party) may not be advised timely of any changes.  Options, requirements, and processes vary from servicer to servicer.  


To understand the current options available with new servicers/subservicers, carefully review the product code and associated product/purchaser guidelines for correct information on who permits recasts.  If there are specific questions after reviewing that information, please contact the Product Team for assistance at (888) 650-4080 or email to: producthelp@fairwaymc.com.

Jumbo Loans: Investors / Servicers Permitting Recasts
Servicer:Redwood/SPS
 (Select Portfolio Services)
TIAA BankJP Morgan
 Chase Bank
 (Serviced by
 JPMC)
Goldman Sachs
 (Serviced by Shellpoint)
 
 See Securitization Disclaimer Below
 Private Label Securitization
 (PLS)
 Subserviced by
 Mr. Cooper
US Bank
 Jumbo
Recast Eligibility
 Required waiting
 period before
 ability to request
After 1st Payment at Redwood's Subservicer
 (Select Portfolio Services)
After 1st
 Payment
 at
 Bayview
After 1st
 Payment 
After 1st
 Payment
 at
 Loancare
3 - 4 Months after Origination
 AND
 30 - 45 Days After Transfer
 to Mr. Cooper
After 1st
 Payment
 at
 US Bank
Recast FeeNo Fee$250No Fee$300$250$250
Minimum
 Curtailment
$10,000$5,000No
 Minimum
 Amount
10% of Unpaid
 Principal Balance
Minimum: $10,000
 Maximum: 85% of
 Unpaid Principal Balance
No Minimum,
 but US Bank
 Recommends
 at Least 10% of
 Unpaid Principal Balance
Estimated
 Completion
 After Recast
 Process Starts
6 to 8
 Weeks
6 to 8
 Weeks
6 to 8
 Weeks
6 to 8
 Weeks
12
 Weeks
6 to 8
 Weeks







Jumbo Loans: Investors / Servicers NOT Permitting Recasts
JP Morgan Acquisition Corp loans
 subserviced by Shellpoint
There may be other servicers/subservicers
 who do not permit recasts







RECAST INFORMATION AND ADDITIONAL COMMON GUIDELINES
Securitization Disclaimer: Securitization of mortgage loans is a common strategy for investors.  The designation for and/or inclusion of a mortgage in a securitization may materially delay or prohibit the completion of a recast loan modification. Recast requests are therefore reviewed by the servicer on a case-by-case basis.
This list includes servicers Fairway transfers loans to who have made us aware of their recast guidelines.  There may be other servicers/subservicers who do not permit recasts.
 
Not all servicers perform recasts, and servicers/subservicers may change their recast guidelines at any time without notifying Fairway.
 
 Customers MUST contact their current servicer for details.  Guidelines and requirements vary by servicer.
Common Recast Requirements Include:
 1. Loan mau not have had a previous modification
 2. Loan may not be delinquent on monthly payments or in an active bankruptcy status
 3. The loan may not be Interest-Only - During the interest-only period it is not necessary to request reamortization
 4. Adjustable Rate Mortgages must be greater than 6 months from an interest rate adjustment
 5. Servicers may limit the number of recasts permitted during the life of the loan
 6. The recast process is a formal modification to the mortgage loan and extended required processing times may apply
Recast Processing and Completion Timeframe:
 The estimated completion time starts after the Recast Eligibility time has passed AND customers successfully request the recast in accordance to servicer guidelines.
PMI Removal after a Recast occurs:
 PMI removal may not be triggered automatically after a recast, and requirements may vary among other servicers based on their interpretation of guidelines.
 Customers must contact their current servicer for PMI removal details.


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