Yield Spread Premium
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yield spread premium (YSP) is compensation a lender historically paid a broker for delivering a loan at a higher-than-par rate.
What Yield Spread Premium means
Post-2010 rules largely ended borrower-paid YSP arrangements that created conflicts of interest. Today broker compensation is disclosed and can't be tied to steering borrowers to higher rates.
Florida example
A modern Florida borrower benefits from rules that bar the old YSP abuses. So a broker can't quietly pad a rate for extra commission. Compensation is set and disclosed up front.
What it is
A yield spread premium is money a lender pays a broker for placing a loan at a higher rate. Today it must be disclosed and cannot pad broker pay unfairly.
Rules now protect borrowers from hidden markups.
Why it matters
Knowing how brokers are paid helps you trust your quote. Transparency means the rate you get is fair.
We keep our pricing clear and honest. Reach out and we will show exactly how your loan is priced.