First Funding Blog

Does the designated investor have to purchase the loan?

Generally, any commitment issued by a secondary market investor is a conditional commitment to purchase, not an unconditional one. Nonetheless, the secondary market mortgage investors are in the business of acquiring mortgage loans and they have no incentive to unnecessarily tarnish a relationship with any mortgage banker. In most cases, the secondary market mortgage investor will extend reasonable efforts to work with the mortgage banker to negotiate the purchase of the loan.