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Houston Mortgage > Glossary >
Real Estate > Y 1-10
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Yield Spread Premium (YSP)
This is a payment made by a lender to a mortgage broker in connection with a borrower's mortgage transaction. It is shown on the Settlement Statement (HUD-1), but often in a way that is difficult to understand. For example, a $1,000 yield spread premium may be shown as "YSP POC 1000." Borrowers are often unaware that the YSP payment is being made. The payment of a YSP by a lender affects the interest rate charged to the borrower.
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