Mortgage Loan Originator (MLO) Licensing Practice Test 2026 – Your All-in-One Guide to Exam Success!

Table funding refers to a process where a mortgage broker can close a loan in their name, allowing them to effectively fund the loan without it being fully processed by the lender at the time of closing. This method is advantageous for brokers because it simplifies the closing procedure and gives them more control over the transaction. Once the loan closes, the broker then assigns the loan to a lender for funding, often at the closing table, which allows them to offer services without needing to manage the funding through a traditional lending process.

Brokers engaged in table funding can provide borrowers with a faster turnaround since they can close loans quickly and efficiently. This creates a smoother experience for the borrower, who may not notice any differences in service despite the complexity behind the scenes.

The other options describe scenarios that do not accurately capture the essence of table funding. For example, the idea of brokers originating loans without lender support misrepresents the collaboration that exists in table funding. Similarly, the notion that it is exclusive to correspondent lenders is inaccurate, as table funding can operate through various broker arrangements. Lastly, the process does not involve lenders funding loans after origination in the traditional sense, but rather at the point of closing when the loan is assigned.