Yield Spread Premium (YSP)
The yield spread premium is money paid to a mortgage broker when they originate a loan higher than the current Par Rate. This type of “fee” is considered a back end fee by the broker. They aren’t actually paid by you the borrow but are paid by the lender because they sold you a loan at a rate higher than the par rate.
Mortgage brokers are required to report their YSP to the borrow within three days of an application via the good faith estimate and again in the Hud-1 Closing statement at closing.
Tagged as:
Real Estate
Article by
Kyle
Kyle is the owner and operator of SuburbanDollar.com. He has no formal background in finance or economics which allows him to bring a lay persons view not clouded by formal teachings. You can read more about him or hit him up on twitter to learn more.
Kyle has written 333 articles.
If you like This post, you can follow SuburbanDollar on Twitter.
Subscribe to SuburbanDollar feed via RSS or EMAIL to receive instant updates.
Related Posts:
Annual Percentage Yield (APY)
What to Expect When Closing Your Loan
What is a Mortgage Broker
SuburbanDollar High Yield Savings Account List
Comparing High Yield Interest Rates
Be sure to read our Disclosure Policy regarding affiliate marketing
