A type of rebate or bonus provided to a loan officer by a lender for providing a borrower with a loan that includes an interest rate that is above the current market level. The lender offers the incentive because they will make more money off the higher interest rate loan than loans that were issued at the current market rate.
Related information about yield spread premium:
- Yield spread premium - Wikipedia, the free encyclopedia
A yield spread premium (YSP) is the money or rebate paid to a mortgage broker for giving a borrower a higher interest rate on a loan in exchange for lower up ...
- Yield spread premium | The Truth About Mortgage.com
The definition of yield spread premium in relation to mortgage lending.
- Kickbacks or Compensation - Harvard Law School
mortgage brokers in the form of a yield spread premium. ... The yield spread premium for this loan was calculated from the rate sheet of one particular ...
- Yield Spread Premium Definition | Investopedia
A form of compensation that a mortgage broker, acting as the intermediary, receives from the original lender for selling an interest rate to a borrower that is above ...
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Aug 17, 2010 ... The Federal Reserve has banned mortgage fees you probably weren't even aware of, but that were inflating your home-loan interest rate.
- Buzzword: Yield spread premium
Jul 29, 2009 ... What does it mean? A yield spread premium (YSP) is a payment mortgage brokers receive from lenders when they sell a consumer a mortgage ...
- Yield spread premiums can bite you - Jul. 5, 2007
Jul 5, 2007 ... NEW YORK (CNNMoney.com) -- The yield spread premium (YSP) is a mystery to most home buyers, but it would pay them to get more familiar ...
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Yield Spread Premium (YSP) is without a doubt the most misunderstood and highly profitable secret the mortgage industry has kept from the Am...