Yield Spread Premium
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Yield Spread Premium Articles
Even though many have written mortgage books with simple or cursory explainations of Yield Spread Premium, it for the most part is the mortgage industrie's dirtiest secret as well as it's best kept secret.
Mortgage shoppers can read our articles to learn how to locate YSP on HUD 1 Settlement Statements, how to eliminate mortgage yield spread premium with careful reading of Good Faith Estimates, and learning how loan officers calculate mortgage rates including YSP.
It is important to note that many forces are at work to keep consumers in the dark and paying YSP to banks and brokers in the form of artificially higher mortgage rates.
It is also important to know the banks are NOT and have never been required by law to disclose their YSP income which in the RESPA law changes of 1999 which reclassified bank YSP as "Service Release Premium" simultaneously omitting the disclosure requirement for banks and their newly termed Service Release Premium (SRP).
But a rose by any other name is still a rose. So don't think simply using a bank instead of a mortgage broker puts you in a safe place. As a matter of fact, no matter what you hear, Congress nor HUD will ever protect consumers against either YSP or SRP. A case in point, is some new Federal mortgage rules, that consumer groups had hope for, but in the end offered little protection.
We'll be posting new articles as changes develop, so check back to this page often to see the new posts.
Good Luck!
Author: The Mortgage Insider
All Articles on Yield Spread Premium
Fed's New Mortgage Rules - No Teeth - No Protection
How To Eliminate Yield Spread Premium in Your Next Mortgage?
Mortgage Book Steals My Thunder
Mortgage Rate Calculations To Determine Yield Spread Premium
Settlement Statement - The Only Way To Locate Yield Spread Premium
Why Is Mortgage Yield Spread Premium Such a Well-Kept Secret?
Yield Spread Premium-The Mortgage Industry's Dirtiest Secret
