YSP - Yield Spread Premium

The definition of mortgage term: Yield Spread Premium

Yield spread premium is the pricing associated with an interest rate. In lender paid commission transactions the lender pays the broker out of the YSP for bringing the mortgage application to them. Any left over yield spread premium after the broker compensation will be given to the borrower as a credit. YSP is represented as a credit or fee (discount points) on both GFE and HUD1.


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