Mortgage Broker

Yield Spread Premium

1. Yield Spread Premium Charged By Mortgage Brokers
* Explanation of the Premium Performance Spread:

* Mortgage brokers are licensed mortgage initiators who have relationships with many wholesale mortgage lenders. Mortgage brokers are not lenders. They are intermediaries between borrowers and actual lenders. They can help mortgage applicants who have special needs.

– For example, if a bank cannot help borrowers get a mortgage because of the mortgage lender overlays, a mortgage broker can help
– This is due to the fact that mortgage brokers have points for mortgage lenders who can meet the needs of borrowers
– Mortgage brokers receive a commission for their services
– The commission they make is called the spread bonus, which is another word for the commission
– Lenders pay commission to mortgage brokers, not borrowers

2. Mortgage Banker And Mortgage Broker
* A mortgage banker may also mediate in mortgage loans.

– For example, mortgage bankers use their own funds for a mortgage
– Investors have the same obligations and may not accept borrowers with a value below 620 credit ratings
– Then, borrowers and credit ratings below 620 may require brokering without mortgage lenders
– Mortgage bankers do not disclose the premium for the spread
– This is because it covers from within groups
– Mortgage brokers reveal the spread premium because they are not lenders but intermediaries
– There are no disclosure bonuses in banking transactions
– However, for mortgage transactions, the broker must disclose the bonuses for the spread on the HUD settlement account

You want to know more, contact The Gustan Cho Team at Loan Cabin at 262-716-8151 or send an SMS for faster response. Or write to us at We are available 7 days a week, in the evening, on weekends and holidays.

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