Is the legality of yield spread premium?

This being said, how can you calculate the yield spread premium?

Yield Spread Premium One point equals 1% of the total loan amount. The bank would offer a broker a rate at zero points, then reduce the rate for points paid or increase rebated rates. The difference between the rate you are offered and the rate at which you accept is called the mortgage yield spread.

Also, know where the yield spread premium must be disclosed in a mortgage transaction. "The law states that if you're a broker, you must disclose the yield spread premium at page two," of a federally mandated Settlement Sheet. This sheet is required for all loans. Bob Chaplin, president of The National Association of Planners, said that the yield spread premium must be disclosed in a mortgage transaction.

You might also ask: What is a yield spread for a mortgage?

The yield spread bonus (YSP), is money or rebate that is paid to a mortgage agent for granting a borrower an increased interest rate in return for lower upfront costs. This can be in the form of origination fees or discount points.

What does SRP stand for in the mortgage industry

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