The following conditions are required for mortgage recast eligibility:
- The loan must be conventional.
- Either Fannie Mae or Freddie Mac must be an investor on the loan, and the investor must allow recast modifications.
- The account cannot have a scheduled service release. If the account does have a scheduled service release, the customer should contact the new investor for recast guidelines.
- The contribution amount must meet or exceed the minimum requirement of 10% of the current account balance.
- The loan may not have had a previous modification.
- The account may not be currently active in bankruptcy.
- The account may not be currently delinquent.
- The loan may not be interest-only. During a loan’s interest-only period, it’s not necessary to request a re-amortization of the account.
- In the case of an Adjustable Rate Mortgage (ARM), there may not be an interest rate change scheduled sooner than 6 months.
To find out if Fannie Mae owns your loan, use the Fannie Mae Loan Lookup tool. To find out if Freddie Mac owns your loan, use the Freddie Mac Loan Look-up Tool.