Is Yield Spread Premium illegal or will it become illegal with the new Federal legislation being passed?

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Charging Yield Spread Premium or getting income from “rate bumping” is not now nor has it been illegal. The most recent changes proposed in new legislation has stopped just short of outlawing it. I’m afraid the mortgage broker lobbyists are just too powerfull to let it go. Plus, legislators have a “fairness” issue to deal with if they “outlaw” Yield Spread Premium for mortgage brokers, but continue to allow Service Release Premiums mortgage banks and “direct lenders”. I think both are here to stay.

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