Finance
A Florida mortgage broker who receives a 'yield spread premium' (YSP) from a lender for steering a borrower into a higher interest rate loan is:
AEntitled to this compensation as part of normal origination
BRequired to disclose the YSP on the Loan Estimate and must ensure the borrower received a tangible benefit✓ Correct
CViolating RESPA regardless of disclosure
DActing legally as long as the total fees don't exceed 3% of the loan amount
Explanation
Yield spread premiums must be disclosed on the Loan Estimate. Under TRID and RESPA, compensation must be disclosed and cannot be used to steer borrowers into worse loans solely to benefit the broker.
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