Zillow Advice: Mortgage - How much YIELD SPREAD Premium is in your loan? http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ Zillow Advice | Zillow Real Estate David&nbsp;You have hit an ... http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ <p>David</p><p>&nbsp;</p><p>You have hit an issue that has been around for many years.&nbsp; The Banks and <a href="http://www.zillow.com/mortgage/">Mortgage</a> Bankers who fund their own <a href="http://www.zillow.com/mortgage/">loans</a> do Not have to play by the same rules.</p><p>&nbsp;</p><p>It may be frutile, but with everything that is going on with <a href="http://www.zillow.com/mortgage-glossary/HUD/">HUD</a>, Congress, and the Senate.....all you can do is make this point if and when you write them over the new proposed legislation that they are adopting for our industry.</p><p>&nbsp;</p><p>In CA, the DRE really dislikes it and will issue " Cease and Disist " orders if they catch you advertising " No Cost " loans without a detailed explanation.</p><p>&nbsp;</p><p>Best Regards</p> Wed, 16 Apr 2008 15:48:00 GMT http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ 2008-04-16T15:48:00Z David, people do think there ... http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ <p>David, people do think there are true no cost <a href="http://www.zillow.com/mortgage/">loans</a>, free appraisals, and everything else they are told. It makes it hard for them to believe the <a href="http://www.zillow.com/mortgage/">mortgage</a> professional that is truly being honest to them. Usually they find out the truth when its to late (at the closing table)</p><p>&nbsp;</p><p>I have always told prospects that banks all pretty much get their money from the same place, so if you have one thats offering something that is drastically lower they sould be very careful.</p><p>&nbsp;</p><p>Also why would&nbsp;a client&nbsp;think that a title company, appraiser, survey company and everyone else in a real estate transaction would work for free. When someone tells them there are no costs they really need to realize that someone is paying all those cost and chances are its them. Wait, forget the chances are, it is them.</p><p>&nbsp;</p><p>I will do a "no cost" <a href="http://www.zillow.com/mortgage/">loan</a> if my client wants that, but I explain that they get that through a higher interest rate.</p><p>&nbsp;</p><p>I think there are plenty of mortgage professionals that get upset over the false claims or deceiving tactics of some mortgage people (myself included).</p><p>&nbsp;</p><p>But I truly believe there are more of us doing things the honest way and trying to give out clients good service and a little knowledge along the way!!!</p><p>&nbsp;</p><p>Good Post David!&nbsp;&nbsp;</p><p>&nbsp;</p> Wed, 16 Apr 2008 00:41:00 GMT http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ 2008-04-16T00:41:00Z Lenders have always had the ... http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ <p>Lenders have always had the same compensation, at least the ones I've worked at. Only difference was in the disclosure of it. Pricing a <a href="http://www.zillow.com/mortgage/">loan</a> comes down to how honest the loan officer is. Some people try to make 4 points on every deal still! How? I have nooooo idea.</p><p>&nbsp;</p><p>No cost <a href="http://www.zillow.com/mortgage/">loans</a> carry a higher rate. People can't work for free. If someone says they don't want out of pocket costs, it's coming out of equity or YSP, one of the two. I always find it's better to be honest about compensation, that way the client can make an informed decision.</p> Wed, 16 Apr 2008 00:33:00 GMT http://www.zillow.com/advice-thread/How-much-YIELD-SPREAD-Premium-is-in-your-loan/28174/ 2008-04-16T00:33:00Z