service release premium


Also found in: Acronyms.

service release premium

The commission a lender pays a loan broker in return for placing a loan with that lender rather than another.Also called yield spread premium.

References in periodicals archive ?
of loans (A) (484) 1,658 1,174 (1,934) 857 (1,077) Service release premiums (B) 0 0 0 (1,054) 1,054 0 Other 1,092 444 1,536 831 550 1,381 Total 39,428 3,004 42,432 32,230 3,757 35,987 Interest expense 27,875 624 28,499 25,575 884 26,459
Also known as par plus or service release premiums, these are payments made to banks, lenders, mortgage bankers, mortgage brokers and other originators when they sell or transfer a loan to another lender or to Fannie Mae or Freddie Mac.
Interest income $12,880 $168 $13,048 Gain (loss) on sale of loans (A) (81) 180 99 Service release premiums (B) 0 0 0 Other 109 98 207 Total 12,908 446 13,354
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