What characterizes Table Funding in mortgage transactions?

Table funding is characterized by a specific lending arrangement in which mortgage brokers originate and fund a loan using the funds provided by a lender. In this process, the broker completes the transaction at the closing table, which allows them to facilitate the loan for the borrower while relying on the lender's resources. This method streamlines the funding process by having the lender provide the necessary capital for the loan directly at the closing, rather than the broker needing to have their own capital available.

This is particularly advantageous for brokers because it allows them to close loans more quickly and efficiently without the need for extensive capital reserves. By utilizing table funding, brokers can help borrowers obtain financing more smoothly and ensure that the funds are sourced from established lenders, thereby maintaining compliance and minimizing risk.

The other options do not accurately reflect the characteristics of table funding. For instance, the requirement for upfront fees relates to other types of mortgage structures but does not describe table funding itself. Similarly, sequential signing of loan documents pertains to closing procedures rather than the funding arrangement. Finally, stating that table funding is only available for large commercial properties misrepresents the broad applicability of this funding method across various types of loans, including residential transactions.