From HALLEX, the manual for Social Security's Office of Disability Adjudication and Review (ODAR) (and no, the name hasn't changed yet):
I-2-5-12 Remand for Revised Determination Last Update: 8/3/17 (Transmittal I-2-211)
A.When to Remand for a Revised Determination After a claimant files a request for hearing but before an administrative law judge (ALJ) holds a hearing, an ALJ may, under certain circumstances, remand a case to the Disability Determination Services or other component that issued the determination. See 20 CFR 404.948(c) and 416.1448(c). An ALJ may remand for a revised determination on his or her own initiative, or at the request of a claimant. An ALJ will only remand a case for a revised determination if there is reason to believe the revised determination would be fully favorable to the claimant. While the regulatory language is quite broad, the ALJ will only consider this requirement met if the ALJ is reasonably certain a revised fully favorable determination will be issued on remand. For example, the ALJ may receive new and material evidence that appears to change the outcome, or a change in the law permits a favorable determination. ...