HomeBridge allows for Recasts whereby the principal balance is reduced by $10,000.00 or more and the principal and interest is recalculated based on the lower principal balance. There is a $250.00 recast fee along with county recorder fees for the loan modification. If the loan is eligible, a modification agreement is prepared and sent to the borrower(s) for signatures. Once the modification, principal reduction, and fees are received the modification is processed. For FNMA/FHLMC Investors there is a ‘2 month lag time’ (i.e. if the Principal Curtailment comes in the February 2016 payment, the reduced P&I would not be effective until April 2016). To get the process started, the borrower must submit a signed written request.
F.H.A., V.A & R.H.S loans are NOT eligible for recasts