Yield-Spread Premium

A payment made by a lender to a mortgage broker for delivering an above-par loan.

Apar loan is one on which the lender charges zero points. Lenders charge points on loans carrying interest rates below that on the par loan and pay points or rebates on loans carrying rates above that on the par loan. See Points/Points and Rebates as Borrower Options.

On loans involving mortgage brokers, the rebate on above-par loans is credited to the broker, and is referred to euphemistically as the “yield-spread premium” (YSP). YSPs are a major part of broker income.

Because borrowers pay YSPs indirectly in the interest rate, they resist them less than they would broker fees paid directly out of their pockets. But a comparable form of “rebate abuse” also occurs with lenders. See Mortgage Scams and Tricks/ Scams by Loan Providers/ Pocket the Borrower's Rebate.

In its proposals for RESPA reform that were pending in 2003, HUD would require lenders to credit rebates to borrowers rather than brokers. The borrower would have to authorize payment of the rebate to the broker. See RESPA/Proposals for RESPA Reform/ Disclosing Mortgage Broker Compensation.

单词	yield-spread premium
释义	Yield-Spread Premium Yield-Spread Premium A payment made by a lender to a mortgage broker for delivering an above-par loan. Apar loan is one on which the lender charges zero points. Lenders charge points on loans carrying interest rates below that on the par loan and pay points or rebates on loans carrying rates above that on the par loan. See Points/Points and Rebates as Borrower Options. On loans involving mortgage brokers, the rebate on above-par loans is credited to the broker, and is referred to euphemistically as the “yield-spread premium” (YSP). YSPs are a major part of broker income. Because borrowers pay YSPs indirectly in the interest rate, they resist them less than they would broker fees paid directly out of their pockets. But a comparable form of “rebate abuse” also occurs with lenders. See *Mortgage Scams and Tricks/ Scams by Loan Providers/* Pocket the Borrower's Rebate*. In its proposals for RESPA reform that were pending in 2003, HUD would require lenders to credit rebates to borrowers rather than brokers. The borrower would have to authorize payment of the rebate to the broker. See* *RESPA/Proposals for RESPA Reform/* Disclosing Mortgage Broker Compensation**.
随便看	side pocket (video game) side post side product side-product sideproduct sidequel sider sider- sideraerolite side rail siderail side rake sideral sideral day sideral month sideral time sidera medicea siderate siderated sideration side reaction sidereal sidereal astrology sidereal clock sidereal clocks