A recast is the process of submitting and applying a large principal payment and using the new reduced loan balance to re-amortize the existing monthly mortgage payments over the remaining term of the loan.
- This process does not shorten term or change interest rate
- Results in a reduced principal and interest portion of monthly payment
- This process is most commonly associated with the sale of an original home, investment home or second home
Example: When buying and financing a new home, the new mortgage may originate before the sale of the previously owned property occurs. When the previously owned property sells, some customers wish to pay those sale proceeds toward the unpaid principal balance of their new mortgage loan.
Click here for an Overview of General Recast Guidelines
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
Click the video below to view helpful information about Recasting.
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.