Mortgage Glossary
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.
Related Mortgage Terms
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.