First Funding Blog

Funding

The term Funding is used in many ways to mean many things, each which may be distinctly different based on the perspective or status of a given loan. It is very important that all parties understand or convey the context in which the word Funding is used. For example; Funding may refer to the ordering of funds from a warehouse lender for a loan closing. Funding may refer to the transmittal of warehouse funds to a settlement agent for a loan closing. Funding may refer to the disbursement authorization given to the settlement agent for a loan closing. Funding may refer to the disbursement of loan proceeds by a settlement agent. Funding may refer to the transmittal of loan purchase funds by a mortgage investor for the purchase of a loan in a secondary market transaction with a correspondent originator.