In one sentence
Re-amortizing a loan over a new schedule, often after a principal paydown, without originating a new loan.
The longer version
A recast keeps the existing loan but recalculates payments on a new balance or schedule, commonly after a lump-sum paydown lowers the principal. It is lighter than a refinance because the loan itself survives.
Recasts are documented modifications, tracked and boarded like other term changes so servicing reflects the new payment math.
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