Mortgage Servicing and Loan Modifications: 9.3.2.2.6 Reamortization
Reamortization of the outstanding balance is usually used to repay the principal and interest accrued and advances made during a moratorium and in conjunction with a delinquency workout agreement.125 The loan may also be reamortized to bring a delinquent account current before an assumption, to repay assistance that was impermissibly given to borrower due to inaccurate information, or to bring an account current when an appeal is resolved in the borrower’s favor.