A yield spread premium 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. This "may [be used to] wipe out or offset other loan costs, like Loan Level Pricing Adjustments."

A form of compensation that a mortgage broker, acting as the intermediary, receives from the original lender for selling an interest rate to a borrower that is above the lender's par rate for which the borrower qualifies. The yield spread premium must be disclosed on the HUD-1 Form when the loan is closed.

Mortgage brokers are compensated directly by borrowers when the borrower pays an origination fee, when the lender pays the broker a yield spread premium or a combination of these. If there is no origination fee, the borrower is most likely agreeing to pay an interest rate above the market rate. There is no such thing as a no-cost mortgage for the borrower.

www.nber.org [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

link.springer.com [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

heinonline.org [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

www.sciencedirect.com [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

www.sciencedirect.com [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

academic.oup.com [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

onlinelibrary.wiley.com [PDF]

… Since then, various authors have investigated a variety of alternative interest rates and spreads.1 … yields according to the expectations hypothesis. Both of these interpretations of the yield spread's usefulness for forecasting real output …

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