The Fed makes a rate cut and current mortgage interest rates rise. The current mortgage interest rate on 30 year fixed loan routinely inches up compared to rates before the cut.

Consumers are expecting the opposite to happen and yet it rarely does. This opposite market reaction is pretty consistently over the last few cuts.

The best mortgage is never found by collecting a handful of Good Faith Estimates or by calling around getting mortgage rate quotes. Yet this is THE shopping method for most.

If you define the best mortgage as the loan having the best mortgage rate, the lowest costs, and the one that fits your financial circumstances in both the short and long term…then standard comparison shopping methods will not work.

Yield Spread Premium (YSP) is without a doubt the most misunderstood and highly profitable secret the mortgage industry has kept from the American mortgage consumer.

The government’s own number pegs the consumer cost of the yield spread premium deception at $16,000,000,000 a year

…yes that’s billion, with a “b”! My own figures put it into the hundreds of billions of dollars since the government’s numbers were woefully short-sighted.

All the online rate advertising websites claim to have the best mortgage rates. It is easy to claim you have the best mortgage rates when you have no oversight.

There is more than one lawsuit claiming the rates Bankrate.com, for example, post are manipulated by the companies that advertise on their site. A recent $46,000,000 verdict was pinned on NovaStar for allegedly making false mortgage rate postings on Bankrate.com. They plan to appeal.

Mortgage banking behemoths Wells Fargo and Countrywide Home Loans are dealing with ongoing and more recent charges of predatory lending. Predatory lending is a moniker usually reserved for the most egregious examples of unscrupulous lending behavior. The consumer groups ACORN and NACA are recently shining the light on what mortgage brokers like myself have known for a very long time…

More Evidence Reveals the Yield Spread Premium Lie Is Real!

So as you may know my pet peeve of the mortgage industry is Yield Spread Premium (YSP) overcharging.

What is YSP overcharging?

It is how the mortgage industry makes big hidden bucks by lying to borrowers about mortgage rates…closing 90% of all loans at rates higher than required.