Which statement describes a table-funded loan closing?

Which statement describes a table-funded loan closing?

• A. The closing occurs in the borrower's name
• B. The closing occurs in the lender's name but funded by the broker
• C. The closing occurs in the designated mortgage lender's name
• D. The closing occurs in the investor's name

Answer: (C)

Table funding means the loan is closed in the name of the lender that provides the funds at the closing, even if another party helped originate the loan. The documents show the designated mortgage lender as the lender of record, and that lender is the one funding the loan at the table. After closing, the loan may be sold or transferred to another investor, but the closing itself reflects the funding lender’s name. So describing a table-funded closing as occurring in the designated mortgage lender's name is accurate because the lender of record at the closing is the one funding the loan. Closing in the borrower’s name would be a standard non-table-funded closing. Saying it’s funded by the broker isn’t correct since brokers don’t typically fund loans. Closing in the investor’s name would imply the investor is the party of record at closing, which isn’t how table funding works.

Table funding means the loan is closed in the name of the lender that provides the funds at the closing, even if another party helped originate the loan. The documents show the designated mortgage lender as the lender of record, and that lender is the one funding the loan at the table. After closing, the loan may be sold or transferred to another investor, but the closing itself reflects the funding lender’s name.

So describing a table-funded closing as occurring in the designated mortgage lender's name is accurate because the lender of record at the closing is the one funding the loan. Closing in the borrower’s name would be a standard non-table-funded closing. Saying it’s funded by the broker isn’t correct since brokers don’t typically fund loans. Closing in the investor’s name would imply the investor is the party of record at closing, which isn’t how table funding works.