Yield Spread Premium
 

There's a lot of talk in the mortgage business about the so-called "yield spread premium." While those in the loan business contend that it's a necessary fee for doing business in the mortgage loan world, others view it as simply a kickback. A yield spread premium is a lump sum paid by a lender to the mortgage broker for receiving a loan with a higher interest rate.

As a consumer, you may be completely unaware of the yield spread premium until it appears as a line item on your mortgage documents. While the fee is used to help offset the borrower's closing costs, an unscrupulous broker will see the YSP as a reason to steer clients toward a certain lender. This steering concept is illegal.

As with many rules and regulations in the mortgage loan world, the YSP is often misused to the detriment of the borrower. In this case, it is simply a kickback from the lender to the mortgage broker and it's best to steer clear yourself of any loan that gives your broker a YSP. To learn more about staying ahead of predatory lenders, contact the Premier Mortgage Auditing's Fraud Center.

Whether you've become a victim of fraudulent lending tactics or simply want to avoid them in the first place, the Premier Mortgage Auditing's Fraud Center can help. Just call or email us at (419) 340-9407 or at diiams123@yahoo.com, simply fill out our online consultation form. A smart borrower is an informed borrower and the Premier Mortgage Auditing's Fraud Center wants to give you all the information you need. Contact us today!