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Mortgage brokerageSubject 18 of 19

Table funding

A closing arrangement in which a loan is funded by an advance from another person and assigned at or around settlement, as defined by applicable lending rules.

Direct answer

What does Table funding mean?

A closing arrangement in which a loan is funded by an advance from another person and assigned at or around settlement, as defined by applicable lending rules.

Exam cue: New York's mortgage broker guidance states that regulated brokers cannot originate loans through a table-funded transaction.

What does it look like in a question?

New York example

An entity appears as lender at closing but relies on a prearranged funder and immediate assignment.

Common exam trap

What should you not confuse it with?

Table funding is not the same as a lender later selling a loan on the secondary market.

Related mortgage brokerage terms

BorrowerA person or entity that receives or seeks credit and promises repayment under the loan terms.LenderA person or entity that extends credit and is entitled to repayment under the loan agreement.Mortgage bankerA person or entity in the business of making mortgage loans with its own funds or a credit line, subject to applicable licensing or exemption rules.Mortgage brokerA person or entity that solicits, processes, places or negotiates mortgage loans for others rather than acting as the funding lender in the ordinary broker role.Mortgage loan originatorAn individual who, for compensation or expected gain, takes a residential mortgage application or offers or negotiates residential mortgage terms, subject to statutory exceptions.Referral feeCompensation paid for directing business or a customer to another provider.
Sources used2 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

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