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 betray the fact they earned that money by raising your rate. Raising your rate for no other reason than to increase their income is not good for business.

In order for scams to work, the mark has to be oblivious to the deception, right?

If he discovers the truth, the jig is up! No more money…and maybe even a jail sentence.

Is that really so different from hiding mortgage yield spread from the American public?

If a loan officer gave you a choice of a loan at 6.5% rate or a loan at 6.0% rate, they know which one you would choose.

They also know they just lost most of the profit on your loan.

So they don’t give you the choice. The simply say, “Your rate Mr. Smith is 6.5%.”

Consumers need to realize when mortgage shopping they do have a choice of 6.0% instead of 6.5%. Mortgage yield spread premium is real and if you are educated on how to avoid it, you can have the 6.0% rate. You must learn to eliminate YSP on all loans you do now and in the future. We do loans every day here in Colorado without overcharging our clients using YSP.

Type the phrase “mortgage yield spread premium” into Google or any search engine. You can find anything from articles on Senate Banking testimony to lawsuits on this subject. By the way, every time a borrower has sued over mortgage yield spread premium the borrower always wins. Then the banks appeal, and secretly settle out of court. That should tell you something.

If people knew this existed, they would not stand for it and that is why it is such a secret.

Loan officers are very crafty when explaining away mortgage yield spread premium should you ask them about it. Most consumers have never heard of yield spread premium and the ones that have, don’t even know the correct details. So usually the originator never has to field any questions about it in the first place. So when they do get a question about it, they either:
1. Play dumb
2. Get angry
3. Attempt to down play or explain away
4. Are so caught off guard, they stammer, himm and haww…that’s the funny one!

Want to have some fun?

Call a mortgage company (not a bank though…they keep their employees so in the dark, they won’t know what you’re talking about.), get a loan officer on the phone, and ask them how much they typically make from Yield Spread Premium…1 point, 1.5 points, or maybe even 2 points!

Then report back in the comments below…and tell me which reaction you get!

Either way, you won’t get a good reaction. This is another reason to get our Free Tools so you’ll know who to talk with, what to say, and how to get a mortgage company to give a no YSP mortgage each and everytime you need one.

Good Luck!


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