Yield Spread Premium (YSP)

Yield Spread Premium (YSP) is a bonus a mortgage broker gets for charging you a higher interest rate than you qualify for. It essentially makes your loan cheaper upfront by lowering origination fees, but you pay more interest over time. However, in 2010, the Dodd-Frank Act banned YSPs as a consumer protection measure to prevent… Continue reading Yield Spread Premium (YSP)

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