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A standby commitment to purchase loans should be evaluated to determine whether it is a derivative within the scope of ASC 815. If it is, it should be accounted for using the guidance in ASC 815.
As discussed in ASC 310-10-25-6, if the settlement of a standby commitment to purchase a loan is not within the scope of ASC 815, is within a reasonable period of time, and if the reporting entity has the intent and ability to purchase the loan without selling assets, there is no separate accounting for the commitment. If the settlement date is not within a reasonable period, or the reporting entity does not have the intent and ability to accept delivery without selling assets, the standby commitment should be accounted for as a written put option. Subsequent accounting should follow the guidance in ASC 310-10-35-46.
If a commitment to purchase loans is a guarantee within the scope of ASC 460, Guarantees, it should be accounted for using the guidance in ASC 460. See FG 2 for information on guarantees.

PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

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