Common use of Commitment to Buy and Sell Clause in Contracts

Commitment to Buy and Sell. The Servicer hereby agrees to Purchase and take delivery of Mortgage Loans from the Mortgage Lender, and the Mortgage Lender agrees to originate and thereafter to sell and assign Mortgage Loans to the Servicer at a price described below (less any amounts netted out pursuant to Section 4.10 hereof), all on the conditions and terms set forth herein. The purchase price of the Mortgage Loan shall be paid in accordance with Section 4.10 hereof. Mortgage Loans to mortgagors not receiving Entry Costs Assistance shall be acquired by the Servicer from the Mortgage Lenders at a price equal to 100% of the principal amount thereof plus (i) accrued interest and (ii) the applicable Servicing Release Premium. Mortgage Loans to mortgagors receiving Entry Cost Assistance will be acquired by the Servicer from the Mortgage Lenders at a price equal to 100% of the principal amount thereof plus (i) accrued interest, (ii) the applicable Servicing Release Premium, and (iii) the amount of cash assistance provided by the Mortgage Lender for such Loan, as directed by the Authority. The Servicer may purchase Mortgage Loans on any Business Day. As a condition to the purchase of each of the Mortgage Loans by the Servicer, the Mortgage Loan shall (i) be current in payments of principal and interest, (ii) be in compliance with the applicable requirements of FHA, VA, USDA Rural Development, the PMI Insurer, the GNMA Guide, Xxxxxxx Mac or Xxxxxx Mae, as applicable, (iii) bear interest at the Loan Rate, (iv) be made to an Eligible Mortgagor to finance the acquisition of a Single Family Residence, the Purchase Price of which does not exceed the Maximum Purchase Price described in Section 4.06 hereof, all as provided in this Agreement, and (v) otherwise be made in compliance with this Agreement and the Program Manual.