table funding

table funding

A lending method employed when a loan originator does not have access to the money necessary to make loans and then hold them until it has enough to sell on the secondary market. As a result, the originator forms a relationship with a lender who provides the funds for closing and immediately takes an assignment of the loan.This is called table funding. Under regulations of the Department of Housing and Urban Development, table-funded loans must disclose service release premiums—profit received by the originator—on the loan closing settlement statement. Loans sold on the secondary market do not have to make those disclosures.

References in periodicals archive ?
Today there are 100 correspondent investors, and a greater number table funding for mortgage brokers.
In addition, three of the consensuses are summarized: allocation of a residual value guarantee to minimum lease payments in leases involving land and buildings, measuring loss accruals by transferors of receivables with recourse and table funding arrangements.
Brokers accustomed to table funding needed help with the added responsibilities of underwriting, closing and funding, she explains.
That goes well, and the next thing you know you have some small brokers that want to become lenders, [so] you're table funding.
Only nine firms of those surveyed bought more than $10 billion of closed loans, while 18 firms produced $10 billion or more through table funding.
Indeed, only nine firms bought more than $10 billion of closed loans, while 19 firms produced $10 billion or more through table funding.
About two-thirds of its wholesale business comes from table funding.