Courtesy of Calculated Risk, I come across the term "loan recast."It's similar to a "loan reset", in that it means that your mortgage payments are increasing, but instead of being an increase in interest rates, it is a change in terms.
So, for example, if you have an interest-only or negative amortization mortgage, when the time comes to catch up, and make payments on principal, you have a recast.
They are in some ways much more worrisome than resets, because if a mortgage resets during a time of low interest rates, the payment may not change by much, but when a mortgage recasts, the payments go up regardless of the interest rates.
The yellow are recasts, and they look like a tsunami.
The graph on the right
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