What does the term Table Funding refer to in the context of mortgage lending?

Table Funding refers to the process used in mortgage lending where the originating company, typically a mortgage broker or lender, is able to close the loan on behalf of the actual lender without having to wait for the money to be funded at that time. This means that the closing occurs at the table, and the funds are made available immediately, which allows the borrower to receive their loan on the same day that the transaction is finalized.

In this context, the originating company acts as an intermediary and is responsible for the loan documents, while the actual lender funds the loan after it has closed. This process is advantageous for both the borrower and the originating company, as it streamlines the closing process and enables quick access to funding.

This clearly distinguishes Table Funding from other aspects of mortgage lending, such as different types of mortgage products, methods of underwriting, or secondary market transactions, which do not focus on the immediate availability of funds at the time of closing.