$13,000. That's the projected number, after five years, the prospective borrower was looking at between two loan programs.
His loan officer said that was the best pricing with his credit score and scenario. I explained to the borrower that may be best pricing, but for the loan officer, not to mention setting the stage for a refi in a couple years. So, a point up front, a point on the back (undisclosed), with a little lender credit looked fine to the borrower until he knew what was really happening.
As far as I'm concerned, YSP is the borrower's. They pay a higher rate; they're entitled to benefit from it. Time for some pricing clarity in the lending industry.