yield spread premium


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yield spread premium

See service release premium.

References in periodicals archive ?
1, 1999) (noting that yield spread premiums might be illegal where mortgage brokers receive additional fees for convincing borrowers to accept higher rates).
Curiously, the court later clarified its earlier ruling, stating "certainly the court has not reached a final decision about the legality of yield spread premiums.
MBA applauds Secretary Martinez for acting to increase legal certainty in the area of yield spread premiums, which will help to preserve an important consumer financing tool.
Further, it reiterated the industry's appeal for a clarification by HUD of the yield spread premium issue.
A yield spread premium falls within this exception because the mortgage broker "wholly apart from the settlement services it provided the borrowers, created a valuable asset for Inland (the lender), and the payment from Inland to the broker reflected the value of that asset.
We would also expect to see some benefit from adjustments made to the yield spread premiums paid to brokers, employee compensation, interest rates charged to borrowers and other adjustments," added Monahan.
The Federal Reserve is considering a rule change that would restrict the use of yield spread premiums, and the House FHA reform bill would strengthen the agency's powers to withdraw its approval from lenders with high default rates.
The bill bans controversial incentives for lenders and mortgage brokers that steer borrowers into larger or higher-cost loans than those for which they qualify, such as yield spread premiums and other compensation structures tied to the size of a loan.
Critics say yield spread premiums are partly responsible for spiking foreclosures.
Many commercial lenders do not restrict or disclose the payment of fees to referring mortgage brokers, including yield spread premiums (although real estate brokers must be sure to comply with their own industry's rules and regulations regarding receipt and disclosure of fees).
Greater disclosure of lenders' fees to mortgage brokers, which are often called yield spread premiums.
Yield Spread Premiums paid by lenders to mortgage brokers was also a hotly debated topic.