Finance

A lender's yield spread premium (YSP) in Oklahoma was historically paid to mortgage brokers for originating loans at above-market interest rates. Under Dodd-Frank, this practice:

AIs still completely unrestricted
BIs regulated to prevent conflicts of interest — mortgage originators may not receive compensation that varies based on loan terms other than loan amount✓ Correct
CWas eliminated for all loan types in Oklahoma
DNow requires OREC approval

Explanation

The Dodd-Frank Act regulated compensation to mortgage loan originators, prohibiting compensation that varies based on loan terms (such as interest rate) to reduce conflicts of interest. Originators may be paid based on loan amount but not on the rate charged to the borrower.

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