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A yield spread premium (YSP) is the money or rebate paid to a mortgage broker for giving a borrower a higher interest rate on a loan in exchange for lower up front costs, generally paid in origination fees, broker fees or discount points.
Yield spread can also be an indicator of profitability for a lender providing a loan to an individual borrower. For consumer loans, particularly home mortgages , an important yield spread is the difference between the interest rate actually paid by the borrower on a particular loan and the (lower) interest rate that the borrower's credit would ...
The Federal Reserve adopted new standards that ban yield spread premiums on mortgages, a practice that critics say led to homebuyers being saddled with unfairly high mortgage rates. The premiums ...
The spread between the LIBOR (or swap) rate and the government bond yield of similar maturity is usually positive, meaning that private borrowing is at a premium above government borrowing. This spread is a measure of the difference in the risk tolerances of the lenders to the two types of borrowing.
The Federal Reserve has banned mortgage fees you probably weren't even aware of, but that were inflating your home-loan interest rate. On Monday, the Fed announced it was banning yield spread ...
But first, the background. If you've refinanced your mortgage without paying closing costs, there's a ... 24/7 Help. For premium support please call: 800-290-4726 more ways to reach us. Mail. Sign ...
In finance, mortgage yield is a measure of yield of mortgage-backed bonds.It is also known as cash flow yield. The mortgage yield, or cash flow yield, of a mortgage-backed bond is the monthly compounded discount rate at which net present value of all future cash flows from the bond will be equal to the present price of the bond.
The Fed spelled out its goals yesterday: "Prohibit lenders from paying mortgage brokers "yield spread premiums" that exceed the amount the consumer Abuses the Fed hopes to correct with the new ...