yield spread premium: You, Me, and the YSP: Dirty Rotten Kickback or A Borrower's Best Friend? - 02/10/11 06:46 AM
The time nears for yet one more EXTINCTION in the mortgage business: yield spread premiums will soon be considered illegal, courtesy of the Dodd-Frank Act.
Yield spread premium is when the lender pays the loan officer for doing the loan instead of (or in addition to) the borrower paying points.
You might be tempted to believe that yield spread premium is a "kickback" by reading the mainstream media. You could get the idea that ending YSP will somehow create:
more accountable loan officers greater clarity for borrowers And, maybe it will.
But at what cost?
As with most things dished up to "protect" the consumer, this ultimately will add … (66 comments)