Back-to-Back Commitment
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Back-to-Back Commitment

An agreement in which a bank makes a loan for a new construction and an investor promises to buy that loan from the bank at a specified future date. This commitment reduces the risk the bank takes on when it makes a loan. A back-to-back commitment is identical to a take-out commitment, but applies to loans on new constructions, rather than mortgages on existing properties.

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Back-to-Back Commitment (redirected from Back-to-Back Commitments)

Back-to-Back Commitment
(redirected from Back-to-Back Commitments)