Yield spread premium
A yield spread premium (YSP) is the money or rebate paid to a mortgage broker for giving a borrower a higher interest rate on a loan in exchange for lower up front costs, generally paid in origination fees, broker fees or discount points. This “may [be used to] wipe out or offset other loan costs, like Loan Level Pricing Adjustments (instituted by FNMA).”
- "DFI: Yield Spread Premium (YSP)". Indiana Department of Financial Institutions.
- Howell E. Jackson and Jeremy Berry: Kickbacks or Compensation: The Case of Yield Spread Premiums, Harvard Law School
- Yield Spread Premium and HR 3915 — Mortgage News Daily