Origination ActivitiesQuestion 268 of 400
A closing is scheduled, but the underwriter adds a 'prior-to-funding' condition. How does this differ from a 'prior-to-doc' condition?
a.There is no difference; both are optional
b.A prior-to-doc condition must be met before closing documents are drawn, while a prior-to-funding condition must be met before loan proceeds are released
c.A prior-to-funding condition is met after the loan closes
d.Both must be satisfied only after recording
Explanation
Conditions are sequenced: prior-to-document (PTD) conditions must be satisfied before closing documents are prepared, and prior-to-funding (PTF) conditions must be cleared before loan proceeds are disbursed. Neither is optional, and both precede funding/recording.
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