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.
Table funding -- all loans are table-funded with no warehouse line required;
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.
Not only are we ensured the loans will be closed accurately, their experience with table funding and the additional steps needed to make these loans close on time equates to less effort and headaches on my part.
Brokers accustomed to table funding needed help with the added responsibilities of underwriting, closing and funding, she explains.
Union Federal Bank offers table funding and closed loan purchases with products ranging from Alt-A with interest only features to new construction financing with one and two time closing options.
That goes well, and the next thing you know you have some small brokers that want to become lenders, [so] you're table funding.
Palatto went on to say, "I believe this new service will become extremely popular with any mortgage broker that utilizes 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.
nMortgage intends to continue the practice of table funding its mortgage loans which will also significantly reduce its risk relative to repurchasing problem loans funded through warehouse lines of credit.
Indeed, only nine firms bought more than $10 billion of closed loans, while 19 firms produced $10 billion or more through table funding.
nMortgage intends to continue its practice of table funding its mortgage loans which will also significantly reduce its risk relative to repurchasing problem loans funded through warehouse lines of credit.