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What are the requirements and documents needed for a recast?

  1. Borrowers need to wait until the loan is sold to determine if the Investor (new owner of the loan) allows recasts. Not all types of mortgages qualify for recasting.
    Ineligible loan types include:
    1. Held for Sale and Government-backed loans such as, FHA, VA, USDA, and Ginnie Mae loans.
    2. Custom Construction, and Manufactured Construction loans.
  2. You must meet minimum principal reduction standards. The Investor on your loan requires for you to pay a minimum amount towards the principal balance. This payment must be made at one time and cannot be made in multiple payments or over a period of time.
    • Fannie Mae, Freddie Mac, and Portfolio Loans must pay the principal balance down by a minimum of $10,000.
    • FHLB Loans must pay the principal balance down by the greater of $5,000 or 10% of the current Unpaid Principal Balance (UPB).
    • Pay a non-refundable $250 recast fee.
    All borrowers must complete and submit a specific letter in writing:
    • All borrowers names on the loan
    • Indicate the request is for a mortgage recast
    • The amount of the principal payment, including breakdown of the amounts must be indicated if your check payment includes the recast fee, ie: $10,000 for principal paydown and $250 recast fee on a $10,250 check
  3. If you are requesting removal of Private Mortgage Insurance (PMI), the principal paydown recast will not occur until after the PMI removal request is completed.
  4. You are in good standing and current on your mortgage loan payments.
  5. You have not requested a recast of your mortgage loan once in the last 12 months.

Mortgage Recast Payment Options

We provide two options for making a mortgage recast principal payment, including the recast fee:

By Mail:

Mail a check to our main office. You may include the check with your letter requesting a mortgage recast.

Make your check payable to 1st Security Bank

1st Security Bank
Attn: Loan Servicing - Recast
PO Box 97000
Lynnwood, WA 98046

Wire Transfer:

Contact us at (800) 683-0973, ext. 2375 to request more information about paying by wire transfer. Please be aware that some banks charge for sending a wire payment.

Mortgage Recast

Next Steps

When all requirements have been submitted and received. One of our Loan Servicing Recast Specialist will be contacting you on your next step.

Need assistance or have any questions? Contact us, we're happy to help!

Call or email our Loan Servicing team with any questions you might have about requesting a mortgage recast, Monday through Friday, 8:30am-5pm PT.