Posted by 101livescan on 1/27/11 9:48am
Msg #370240

Mortgages will be more expensive beginning April 1, 2011

http://mortgagegrapevine.com/thread/?thread=589755

I signed a vp/operations of a small bank in SB last night and the loan officer attended as well.
She mentioned that beginning in April 2011 the YSP is history. No more, whether a bank LO or a mortgage LO. Also mortgages will cost more money, everything is increasing, title, escrow, processing, admin fees, u/w fees.

Reply by CopperheadVA on 1/27/11 9:50am
Msg #370241

Hopefully she said the Signing Agent fee is increasing too.. n/m

Reply by redd on 1/27/11 11:29am
Msg #370244

Pardon my ignorance, but what is YSP?

Reply by Shoshana/AZ on 1/27/11 11:39am
Msg #370246

YSP = Yield Spread Premium

It was money paid on the back end of the loan to the mortgage broker by the lender according to what interest rate was chosen.
Often, a loan originator would present an interest rate to the borrower that might include a payment to the loan officer. It was used to offset the origination fee. In my experience, borrowers are more sensitive to the origination fee. I have even had realtors tell me, "I don't care what you charge on the back end, but keep the origination fee to one point".
I never did business that way. When I was a loan officer I presented everything to the borrower and let them make the choice. Just remember, there isn't any such thing as a free lunch. The LO has bills to pay too.

Reply by Alz on 1/27/11 11:41am
Msg #370247

YSP = Yield Spread Premium. n/m