Mortgage par rate means that rate does not cost you nor does it create any money. Also, there is no par rate that is the same for a mortgage originators. One companies par rate can be different than others because they have different wholesale sources. Mortgage Par Rate Definition Par rate is a rate that [...]

Here’s the question… “My wife and I are in the process of finding a mortgage broker, we’re going to check out the one her brother used. This mortgage broker said that they don’t charge points, so I assume they will make their money from Yield Spread, which is the lender giving her a rebate for [...]

Bernanke’s new mortgage rules are devoid of any real protection from bad mortgage originators since they conveniently skipped regulating yield spread premiums. The new rules apply to all mortgage lenders and therein lies the rub. If the Fed wanted to reign in mortgage broker yield spread premiums they’d also have to address bank service release [...]

Here’s the whole story: “The mortgage broker that we used to buy our home did not disclose a 2.5% YSP before the day of signing and we have since lost the home to foreclosure. We have all the docs that say what the interest rates were supposed to be, and then the jacked up rates [...]

Mortgage originators tell you your mortgage lock is in force when it is NOT. Lying about your mortgage lock status is a common practice to increase loan revenue or cover loan officer mistakes. Loan officers are always trying to make the most yield spread revenue on every mortgage. Telling you the mortgage lock is placed [...]

Not disclosing yield spread premium is a violation of the Real Estate Settlement and Procedures Act, so it’s a crime for sure. If the crime is considered “fraud” per se, I am not sure. However, it is unlikely the Good Faith Estimate (GFE) and/or the HUD1 Closing Statement won’t disclose YSP if it’s being paid. [...]

I’ve compiled a few resources on average mortgage rate data and yield spread premium starting with Congressional testimony from experts and ending with average mortgage rate resources online. Be sure to read the Harvard Professor Jackson’s testimony if nothing else…. Harvard Professor’s Conclusions on YSP Mr. Olson’s Senate Testimony More Average Mortgage Rate Survey Links [...]

Eliminating yield spread premium starts by avoiding banks like the plague. Bank mortgage rates will always include their version of YSP (called SRP) since they have no legal duty to disclose it. (In the banking world YSP is called service release premiums or SRP. This “different” classification was the legal technicality or loophole the industry [...]

Mortgage yield spread premium is responsible for up to two thirds of the revenue earned on every mortgage. Yet most Americans have no knowledge of mortgage yield spread premium or how to avoid it. No one in the mortgage and banking industries wants you to find out about mortgage yield spread premium because it would [...]