In one sentence
A closing where a loan is originated in one lender's name but funded at the closing table by another, who takes the loan by simultaneous assignment.
The longer version
Common in correspondent lending: the correspondent closes in its name with the investor's money and assigns the loan at closing. The borrower experience is one lender; the paper trail shows two.
The mechanics demand tight document coordination, because assignment documents, allonges, and funding conditions all execute in the same sitting as the closing itself.
Common questions
- What is table funding?
- A closing where a loan is made in one lender's name but funded at the closing table by another lender, which takes the loan by assignment immediately.
- Why is table funding used?
- It lets an originator close loans in its own name without using its own balance sheet, typically when a capital partner or warehouse lender provides the funds.
- What documents does table funding add?
- An assignment of the loan documents, an endorsement or allonge of the note, and funding instructions that tie the wire to the assignment at closing.
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