Comments on: Beware of Yield Spread Premium (YSP) on your mortgage http://blog.findwell.com/mortgage/beware-of-yield-spread-premium-ysp-on-your-mortgage/ Seattle Real Estate Info, Advice, Statistics & Discussion Thu, 19 Jan 2012 01:51:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Rhonda Porter http://blog.findwell.com/mortgage/beware-of-yield-spread-premium-ysp-on-your-mortgage/#comment-259 Rhonda Porter Wed, 27 Jan 2010 10:48:19 +0000 http://blog.findwell.com/uncategorized/beware-of-yield-spread-premium-ysp-on-your-mortgage/#comment-259 Update: the 2010 good faith estimate requires that any YSP a mortgage broker is paid be credited to the borrower. Currently some in Congress (who does not understand YSP) are trying to get YSP banned...which would just be removing the credit to the borrower. <br><br>Good Faith Estimates are also completely different from when this post was written... the joys of writing about mortgage stuff in an ever changing world. :) Update: the 2010 good faith estimate requires that any YSP a mortgage broker is paid be credited to the borrower. Currently some in Congress (who does not understand YSP) are trying to get YSP banned…which would just be removing the credit to the borrower.

Good Faith Estimates are also completely different from when this post was written… the joys of writing about mortgage stuff in an ever changing world. :)

]]> By: Rhonda Porter http://blog.findwell.com/mortgage/beware-of-yield-spread-premium-ysp-on-your-mortgage/#comment-146 Rhonda Porter Mon, 26 Oct 2009 16:24:25 +0000 http://blog.findwell.com/uncategorized/beware-of-yield-spread-premium-ysp-on-your-mortgage/#comment-146 <p>Kevin, consumers should be more aware of what that can't see--rebate pricing from banks and lenders. </p> <p>YSP is simply rebate pricing...and mortgage brokers are the only type of lender who are required to disclose the compensation on the back end. </p> <p>Using your example above, if someone went to a mortgage broker and received a rate higher than 5%; the mortgage broker would have to disclose that on the good faith estimate. If the same borrower went to a bank or correspondent lender and received a rate higher than 5%; the mortgage banker/lender would not have to disclose the rebate pricing EVEN THOUGH odds are they are receiving similar rebate pricing as a mortgage broker.</p> <p>When consumers focus on YSP instead of the rate in comparison with closing costs--they get blindsided. And they cannot compare YSP from a mortgage broker with rebate pricing of a mortgage banker since the banker will never share that tidbit with the consumer...because they don't have to.</p> Kevin, consumers should be more aware of what that can’t see–rebate pricing from banks and lenders.

YSP is simply rebate pricing…and mortgage brokers are the only type of lender who are required to disclose the compensation on the back end.

Using your example above, if someone went to a mortgage broker and received a rate higher than 5%; the mortgage broker would have to disclose that on the good faith estimate. If the same borrower went to a bank or correspondent lender and received a rate higher than 5%; the mortgage banker/lender would not have to disclose the rebate pricing EVEN THOUGH odds are they are receiving similar rebate pricing as a mortgage broker.

When consumers focus on YSP instead of the rate in comparison with closing costs–they get blindsided. And they cannot compare YSP from a mortgage broker with rebate pricing of a mortgage banker since the banker will never share that tidbit with the consumer…because they don’t have to.

]]> By: Josh Ferris http://blog.findwell.com/mortgage/beware-of-yield-spread-premium-ysp-on-your-mortgage/#comment-145 Josh Ferris Thu, 01 Oct 2009 05:46:23 +0000 http://blog.findwell.com/uncategorized/beware-of-yield-spread-premium-ysp-on-your-mortgage/#comment-145 <p>Kevin - This is by far one of the most informative and well explained posts on the topic of Yield Spread Premiums I've ever read. Thanks for taking the time to put all the info together and explain it so simply!</p> Kevin – This is by far one of the most informative and well explained posts on the topic of Yield Spread Premiums I’ve ever read. Thanks for taking the time to put all the info together and explain it so simply!

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