Online Resources On Yield Spread Premium
I have 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
More Average Mortgage Rate Survey Links
Fannie Mae Weekly Yield Data - This the Wholesale Market Rate. Too bad they only publish a weekly average mortgage rate survey instead a daily.
Freddie Mac Primary Market Survey This is a survey of over 125 banks, brokers and mortgage companies who provide the rate and points data for that days locked commitments. In other words, it is the retail rate in the market that day as an average mortgage rate!
I’d stick with HSH.com since the Fannie Mae and Freddie Mac average mortgage rate data is less fresh.
Yield Spread Premium Government, Legislative, and Law Firm Links
Senate Banking Committee Press Release
Culpepper v. Inland Mortgage Corp. (6/22/1998, No. 97-6109)
Prepared Statement of Ms. Susan M. Johnson A Private Citizen from Minnesota
Opening Statement - Chairman Sarbannes-Senate Banking Committee
Good Luck!
Author: Rob K. Blake
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Tags: Average Mortgage Rate • Mortgage Tips • Yield Spread Premium
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When you have government politicians comment on the mortgage business that they do not understand it is over whelming.
Yield Spread has to be used by the broker as additional profit inorder to say in business. The YPS is disclosed on the HUD-1. Banks or lenders do not have to disclose. Why do you think Mortgage Brokers do most of the business. It is because they offer the best rates and programs the customer may qualify for. In an open maket place people do not go where they do not get the best deal or service. I have been in the mortgage business for over 10 years, and have beat banks on rates and mortgage services. Further, mortgage rates is one of the most competative products in the county.
And when I hear pretatory lending I think of all the customers I have met that have been covered up in credit card debt at 15% to 24%. But that’s ok because its banks. When I hear pretatory lending, I think of customers buying a truck at $700 to $800 per month and cannot pay the same amount on a mortgage. Brokers are licensed, bonded, insured, regulated by states and federal law they are required to buy back loans that go bad or where not done properly. It is not about YPS it is about the APR and interest rate. If the banks rate is 6.5% 30 year fixed (no YPS disclosed) and a broker rate
is 6.5% 30 year fixed and 2% YPS disclosed, what difference does it make to the customer. NONE.
Also, state law and/or lenders have already limited what brokers can make to 5% of the loan amount. Realtors make 6% of the purchase price.
Next lets eliminate the “back end load” that securities brokers make, lets eliminate what the realtor can make, lets elimnate the commission that the title company makes on the title policy, lets not let the third party companies make any money. Medical costs are pretty high, lets tell the doctors what they can make, Oil companies make money lets tell them what to charge. We no longer need congress or senators we need them to be trustees for all of us, they get any money we make all 300 million people, they tell us how to spend it and what we shoud do, what house to buy, car, food, vacation, and before we make any decision we check with them first. As the comedian Ron White said “you can’t fix stupid”