Finance
Vermont's 'yield spread premium' rules under RESPA require that:
AMortgage brokers receive unlimited compensation for placing loans at higher rates
BCompensation to mortgage brokers be disclosed and not be based on the interest rate at which the loan is originated✓ Correct
CAll loans must be at the prime rate
DYield spreads are always paid by the borrower
Explanation
RESPA and CFPB regulations require disclosure of broker compensation and prohibit compensation arrangements that incentivize brokers to place borrowers in higher-rate loans than they qualify for.
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