Posted by paula/az on 6/27/05 11:18am
Msg #48119

premium charged??

could anybody tell me what this is?? on a ss application it is asking if willing to do a closing if premium will be charged??

Reply by Ernest_CT on 6/27/05 11:41am
Msg #48139

Sounds as if they want a kickback!

Reply by paula/az on 6/27/05 11:42am
Msg #48140

could you elaborate on kickback? do you mean like a discount???

Reply by Ernest_CT on 6/27/05 12:03pm
Msg #48150

"Premium", "Discount", "Value added", or "Kickback"

Some businesses (such as advertising agencies for radio and TV) take an invoice from a vendor (such as a radio station) and "pass the cost" along to their client, who is paying them seperately to develop the campaign. No problem. The agency gets paid by the client and reimbursed for the vendor's invoice. The illegal, unethical, unscrupulous, and downright dishonest thing that sometimes happens with some agencies is that the vendor gives the agency a "premium", say 5% to 10% of the invoice. The agency profits from the client and the vendor, and the client (usually) doesn't know.

Don't play.

Reply by Anonymous on 6/27/05 11:56am
Msg #48145

Premium is usually a term for the yeild spread paid to the LO, however if it is being charged it is typically called a discount. Buyers pay the discount to get a lower rate.

Reply by paula/az on 6/27/05 11:59am
Msg #48147

thanks so much

Reply by ItsMe123 on 6/27/05 9:23pm
Msg #48336

YSP and discount are 2 totally diff things

Discount "buys" the rate down. YSP is paid to the broker/LO if he can charge a higher rate.