Common use of Net Funding Clause in Contracts

Net Funding. The Company and the Service Provider acknowledge and agree that the Service Provider may provide third party services including, without limitation, underwriting, administrative and other mortgage-related services to Correspondents from time to time under bilateral or tri-party agreements by and between the Service Provider and the Correspondent or by and among the Service Provider, the Correspondent and the Company, respectively. In connection with the Service Provider’s provision of such services, and for administrative purposes only, the Service Provider may cause the Company to “net fund” its purchase of Mortgage Loans from a Correspondent by reducing any Loan Commitment Price(s) paid by the Company to the Correspondent by the amount of fees owed to the Service Provider by such Correspondent; provided, however, that any such “net funding” shall comply with the terms of any applicable bailee letter governing the terms of the related purchase. The Service Provider shall then be entitled to collect the amount of such fees relating to such reduction directly from the Company. Any such “net funding” shall be at no cost to the Company and, in effect, a pass through of the Service Provider’s fees through the reduction in the Loan Commitment Price(s) on an individual or aggregate basis.