Comments on: Yield Spread Premium. Capital Hill Testimony http://thexbroker.com/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/ Radical Transparency for The Real Estate and Mortgage Industrys Tue, 06 Jan 2009 14:18:48 +0000 http://wordpress.org/ By: John Thieszen http://thexbroker.com/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-355 John Thieszen Sat, 20 Jan 2007 02:28:32 +0000 http://xbroker.realestatetomato.net/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-355 I just wanted to say thanks for posting this article. I don't really understand how people could give you much flak for it, except that they must feel threatened. I thought it was analytical and direct. I'm a small time investor and I really didn't have any understanding of this. It's very helpful. Thanks again. I just wanted to say thanks for posting this article. I don’t really understand how people could give you much flak for it, except that they must feel threatened. I thought it was analytical and direct. I’m a small time investor and I really didn’t have any understanding of this. It’s very helpful. Thanks again.

]]> By: Brian Brady http://thexbroker.com/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-354 Brian Brady Mon, 27 Nov 2006 02:51:01 +0000 http://xbroker.realestatetomato.net/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-354 I think Diane's post pretty much sums up my comments. YSP is a useful tool in defraying (or "financing") costs related to settlement services. I hope this article written during the "Reconstruction Period" (post civil war) is helpful: http://activerain.com/blogsview/20274/A-Realtor-s-Guide I think Diane’s post pretty much sums up my comments. YSP is a useful tool in defraying (or “financing”) costs related to settlement services.

I hope this article written during the “Reconstruction Period” (post civil war) is helpful:

http://activerain.com/blogsview/20274/A-Realtor-s-Guide

]]> By: Diane Cipa, General Manager, The Closing Specialists® http://thexbroker.com/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-353 Diane Cipa, General Manager, The Closing Specialists® Fri, 24 Nov 2006 03:27:21 +0000 http://xbroker.realestatetomato.net/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-353 The pendulum relationship of interest rates moving below and above par and their relationship to the deal actually offered to the consumer is the core of the discussion. I would guess there are many loan officers and mortgage brokers who don’t understand what a yield spread premium is or maybe was or a discount for that matter. How many brokered mortgage consumers are even offered the choice between a discounted, par or above par rate? I believe in a free market and free competition so adding more regulation is not my first choice. Thanks to blogs like this we can educate the industry and consumers. Folks, compare interest rates and actual lender fees, including the mortgage broker’s fees. When shopping, ask for options with lower interest rates. Par and below par pricing are always available. You won’t have the YSP to help cover the mortgage broker services, but take a look at the possibilities. If your mortgage broker won’t give you another set of options, find a different mortgage broker. The pendulum relationship of interest rates moving below and above par and their relationship to the deal actually offered to the consumer is the core of the discussion. I would guess there are many loan officers and mortgage brokers who don’t understand what a yield spread premium is or maybe was or a discount for that matter.

How many brokered mortgage consumers are even offered the choice between a discounted, par or above par rate?

I believe in a free market and free competition so adding more regulation is not my first choice. Thanks to blogs like this we can educate the industry and consumers.

Folks, compare interest rates and actual lender fees, including the mortgage broker’s fees. When shopping, ask for options with lower interest rates. Par and below par pricing are always available. You won’t have the YSP to help cover the mortgage broker services, but take a look at the possibilities. If your mortgage broker won’t give you another set of options, find a different mortgage broker.

]]> By: The XBroker http://thexbroker.com/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-352 The XBroker Tue, 21 Nov 2006 15:10:51 +0000 http://xbroker.realestatetomato.net/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-352 Ahh! Doug...I shall go back and properly cite your perfect analogy! I've got no problem with YSP's, just so long as they are offered as an option, and their economic impact is explained to the borrower. Almost without exception they are used to line the broker/bankers pockets, wallet, bank account, car payment, etc... Agreed...time to close the loopholes! Been spending much time towards that cause, and plan on giving my blog some love over the next few days, through the holiday. I cant believe 2007 in right around the corner!! So many plans...watch for XBroker to 'evolve' here shortly! Thx for stopping by again :) Jeff Ahh! Doug…I shall go back and properly cite your perfect analogy!
I’ve got no problem with YSP’s, just so long as they are offered as an option, and their economic impact is explained to the borrower. Almost without exception they are used to line the broker/bankers pockets, wallet, bank account, car payment, etc…
Agreed…time to close the loopholes!
Been spending much time towards that cause, and plan on giving my blog some love over the next few days, through the holiday.
I cant believe 2007 in right around the corner!! So many plans…watch for XBroker to ‘evolve’ here shortly!
Thx for stopping by again :)
Jeff

]]> By: Doug Quance http://thexbroker.com/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-351 Doug Quance Tue, 21 Nov 2006 06:47:22 +0000 http://xbroker.realestatetomato.net/2006/11/19/predatory-mortgage-lending-practices-abusive-uses-of-yield-spread-premiums/#comment-351 >P.S. Someone recently posted that what I was finally describing was analogous to “peeling back an onion, it’s gonna make some people cry.” M Hey - I know that someone! (and I think I know a few of the "crybabies", too...) The "backend" has always been fertile ground for the mortgage broker to pick up some cash... and the consumer is rarely aware of all the fees the lender is charging them. Real estate brokerage fees are clear and easy to understand on the HUD. Mortgage fees, on the other hand, are difficult for any consumer to understand. Hell, I don't understand most of them! RESPA was a good step in the right direction... but like most regulations, there are loopholes that should be closed. >P.S. Someone recently posted that what I was finally describing was analogous to “peeling back an onion, it’s gonna make some people cry.” M

Hey - I know that someone!

(and I think I know a few of the “crybabies”, too…)

The “backend” has always been fertile ground for the mortgage broker to pick up some cash… and the consumer is rarely aware of all the fees the lender is charging them.

Real estate brokerage fees are clear and easy to understand on the HUD. Mortgage fees, on the other hand, are difficult for any consumer to understand. Hell, I don’t understand most of them!

RESPA was a good step in the right direction… but like most regulations, there are loopholes that should be closed.

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