Finance
Indiana lenders may charge a 'yield spread premium' (YSP) in mortgage transactions, which represents:
AA bonus paid to the borrower for good credit
BCompensation paid by the lender to the originating broker for originating a loan at an above-par interest rate✓ Correct
CA fee charged for paying off the loan early
DAdditional interest charged during the rate lock period
Explanation
A yield spread premium is compensation paid by a wholesale lender to a mortgage broker when the broker originates a loan at an interest rate above the par rate. TRID disclosure rules require this to be disclosed as compensation.
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