Comprehensive loan recasting allows you to modify the terms of the loan, effectively replacing the old loan with a new one. While the history and transactions of the original loan are retained, but the terms of the new loan take precedence. 

Recasting a loan

To recast a loan: 

1. Navigate to Account Setup > Setup Tools within any activated loan. 
2. Select ‘Modification’ from the dropdown menu (three horizontal lines).
3. Click the ‘Recast Loan’ button on the far right. This will prompt a warning. If you’re sure you want to modify the loan, enter the date the modification will apply in the ‘Modification Date’ field, then click ‘Continue’.
4. The following terms are the same as when creating a new loan, with two additional fields, ‘Payoff Date’ and ‘Last Activity’. 
   1. Payoff date: Select a date to adjust the value in your ‘Total Amount’ field to reflect the payoff amount as of that specific date. 
   2. Last activity: Displays the date of the most recent modification activity.
5. Enter the loan terms, escrow calculator information, additional information, advanced configuration data, and late fee configuration for the modification. Click ‘Save & Calculate’ and then ‘Activate’ to continue.

Modification page

The Modification page displays a list of all modifications made on the account. To view details of any modification, click the information button on the far right. If an account has been recast, a ‘Cancel Modification’ button will appear at the top of the Setup Terms page. You can cancel any modifications on an account as long as you cancel them in reverse chronological order.