A wholesale lending arrangement that permits a mortgage broker to originate, close, and fund a loan using a warehouse line of credit is called:

• A. Retail funding
• B. Table funding
• C. Correspondent funding
• D. Direct funding

Answer: (B)

Table funding is when a wholesale lender funds the loan at the closing table using its own funds, typically through a warehouse line, while the mortgage broker handles origination and closing. The key idea is that the loan is funded at the table by the lender’s credit facility, often in the broker’s presence, so the broker can complete the deal without tying up its own funds. After closing, the loan is immediately owned or sold to the investor by the lender. This setup distinguishes table funding from other funding methods where the loan is funded through different channels or on different terms — for example, retail funding uses the lender’s funds in a consumer-facing retail process, while other structures involve different sequences of funding and sale.