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 front costs, generally paid in
origination fees,
broker fees or
discount points. This “may
e used towipe out or offset other loan costs, like Loan Level Pricing Adjustments (instituted by FNMA).”
References
External links
Howell E. Jackson and Jeremy Berry: Kickbacks or Compensation: The Case of Yield Spread Premiums, Harvard Law SchoolYield Spread Premium and HR 3915
— Mortgage News Daily
Mortgage industry of the United States
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