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 ?
Like Norwest, the company is a relative newcomer to table funding. The broker business resulted from Fleet's acquisition of Plaza Mortgage.
Ranked sixth in table funding was CrossLand, at $11 billion.
About 82 percent of its purchased production comes through closed loans; one out of five loans comes from a table funding. More important still, Norwest is the nation's undisputed champion retailer - preeminent - and for years has dwarfed all others.
Originators without warehouse lines - predominately smaller mortgage brokerages - close mortgages through either table funding or concurrent funding arrangements.
Table funding accounts for 9 percent of its total production.
Here table funding accounts for the smallest share of the pie--22 percent.
About two-thirds of its wholesale business comes from table funding. Chase has backed somewhat away from some closed-loan business, but increased its AOT, mandatory and flow business.
Table funding accounts for less than 12 percent of its total production.