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Mortgage brokerageSubject 18 of 19

Table funding

Table funding is a closing in which a loan is made in one party's name but funded at settlement by another lender's advance and assigned to that lender.

Direct answer

What does table funding mean?

Table funding is a closing in which a loan is made in one party's name but funded at settlement by another lender's advance and assigned to that lender.

Exam cue: New York Department of Financial Services guidance says a registered mortgage broker cannot make a loan, including a table-funded loan, except for the limited FHA exception.

What does it look like in a question?

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 borrower is a person or entity that receives or seeks credit and promises repayment under the loan terms.LenderA lender is a person or entity that extends credit and is entitled to repayment under the loan agreement.Mortgage bankerA mortgage banker is a 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 mortgage broker is a person or entity registered in New York to solicit, process, place or negotiate mortgage loans for others, without funding the loans itself.Mortgage loan originatorA mortgage loan originator (MLO) is an individual who, for pay or expected gain, takes residential mortgage applications or offers or negotiates residential mortgage terms.Referral feeA referral fee is compensation paid for directing business or a customer to another provider.
Sources used2 references with section locators

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