Article: A Consumers Guide To Mortgage Brokers And The Evil Yield Spread Premium

A Consumers Guide To Mortgage Brokers And The Evil Yield Spread Premium

Kick backs, hidden cost, back points, HUD (Housing and Urban Development)calls it ?Yield Spread Premium? (YSP), money paid by the a lender to mortgage brokers outside of closing. Money paid by the lender to the broker because you got a higher mortgage interest rate. Mortgage brokers are suppose to show this on line 801 of their ?Good Faith Estimate? and escrow will show it on the estimated and final closing statements (HUD-1) when closing a loan for a mortgage broker. You?ll never see these ?points? on a loan from a bank, mortgage banker. Savings and loan, thrift, or credit union! Several Congressman and Senators have expressed concern over YSP?s in recent years citing undo enrichment of mortgage brokers and their agents. The news media often mentions ?kick backs? to mortgage brokers, and ...  

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A Consumers Guide To Mortgage Brokers And The Evil Yield Spread Premium

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