Typically used to define a lender’s obligation to fund a mortgage, forward commitments are contractual obligations to carry out certain financing activities upon the satisfaction of any stated conditions. They usually specify the commodity or goods being sold, payment date, delivery date, and price.
Forward commitments
Typically used to define a lender’s obligation to fund a mortgage, forward commitments are contractual obligations to carry out certain financing activities upon the satisfaction of any stated conditions. They usually specify the commodity or goods being sold, payment date, delivery date, and price.
