Finance
Under RESPA, a 'yield spread premium' (YSP) paid by a lender to a broker for placing a borrower in a higher-rate loan than the borrower qualifies for:
AIs always legal if disclosed
BIs regulated and must be disclosed; cannot be used to disadvantage the borrower✓ Correct
CIs illegal under all circumstances
DIs only permitted for FHA loans
Explanation
Under RESPA and TRID, yield spread premiums must be disclosed. Regulations prohibit using YSPs to steer borrowers into loans with worse terms than they qualify for (steering prohibited by Dodd-Frank).
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