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Forward commitment

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FORWARD COMMITMENT - a pledge made by a lender to make a loan to a homebuyer, purchase a loan from anot...
FORWARD COMMITMENTS - Contractual obligations to perform certain financing activities upon the satisfac...

 


hedging strategy whereby a bank obtains either a forward commitment or a standby commitment from a secondary market buyer to purchase loans before the loans actually are booked.

Forward Contract: A contract between two parties to exchange a commodity at a set price on a future date. Differs from a futures contract in that most forward commitments are not actively traded or standardized and carry the risk from the ...

forward commitment A sale or purchase of a security at a specified price, with delivery and cash settlement to occur at a specified future date. forward contract A cash market transaction in which a seller agrees to deliver a specific cash...

See also: Banks, Administration, Commercial banks, Refinance, Indenture

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