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cstlmtg
94 Posts |
 Posted - 04/24/2008 : 08:13:02 AM
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| Is there a new law that is already in place requiring brokers to disclose points and YSP at time of loan application, or are lenders requiring this new form in anticipation of the law changing to require this new disclosure? |
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BB
989 Posts |
Posted - 04/24/2008 : 08:48:01 AM
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| In anticipation of this being required. |
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cstlmtg
94 Posts |
Posted - 04/24/2008 : 09:14:23 AM
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| That is what I thought. I also read it was recommended by the FTC reviewers that it was confusing for the borrowers and it made the brokered loan appear to be more expensive than a retail loan, even if the brokered loan was less expensive.Therefore, they recommended this part of the new law be dropped. |
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asousa
5 Posts |
Posted - 04/24/2008 : 09:34:33 AM
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| RESPA requires us to disclose YSP |
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BB
989 Posts |
Posted - 04/24/2008 : 09:46:03 AM
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quote:
Originally posted by asousa
RESPA requires us to disclose YSP
I think that he is talking about the new form required by Wells and other wholesaleres. In the past I disclosed YSP on the GFE, but now it is also required to go on this form. While this form is meant to clarify it for the borrowers it is still confusing. As explained by Wells the line that says Mortgage Broker Compensation is where YSP is supposed to go. Why isn't it called YSP? |
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asousa
5 Posts |
Posted - 04/24/2008 : 09:50:01 AM
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| sorry, I misunderstood the question. |
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TransNet
454 Posts |
Posted - 04/24/2008 : 09:50:29 AM
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quote:
Originally posted by cstlmtg
Is there a new law that is already in place requiring brokers to disclose points and YSP at time of loan application, or are lenders requiring this new form in anticipation of the law changing to require this new disclosure?
Just to be clear, RESPA, while not a new law, requires points and YSP to be disclosed (estimated) on the GFE within three days of application. The Federal Reserve Board is proposing a change to the TIL regulations (Reg Z) that would require brokers to enter into a binding agreement setting the brokers total compensation including any YSP with a potential applicant PRIOR to taking an application or collecting any fees.
In what may be a response to this proposal some lenders have instituted requirements that brokers enter into an agreement with the borrower that discloses the broker's total compensation prior to submitting a loan, but not necessarily prior to the borrower's application with the broker. If the Board of Governors proposed rule change takes effect, this type of agreement must take place prior to application or the lender will be prohibited from paying a broker YSP.
More for your reading pleasure:
http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=216496 |
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FLAmortgage
276 Posts |
Posted - 04/24/2008 : 10:18:10 AM
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| In FLA it now has to be disclosed as an exact dollar amount - no 1-3% range like in the past. |
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EMScommercial
4691 Posts |
Posted - 04/24/2008 : 10:48:29 AM
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| we disclose ysp in fla |
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maclin
511 Posts |
Posted - 04/24/2008 : 12:10:34 PM
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ok you all got the respa correct, and no more 0%-3%, but to do this correctly you should spell out YEILD SPREAD PREMIUM and put dollar amount and we put it below line 1302 about 1 inch down is the proper place to put it
hope this helps |
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BB
989 Posts |
Posted - 04/24/2008 : 12:23:32 PM
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quote:
Originally posted by maclin
ok you all got the respa correct, and no more 0%-3%, but to do this correctly you should spell out YEILD SPREAD PREMIUM and put dollar amount and we put it below line 1302 about 1 inch down is the proper place to put it
hope this helps
Calyx has a box in the 800 section that says Compensation To Broker and you put in the amount on line 819 |
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maclin
511 Posts |
Posted - 04/24/2008 : 12:59:17 PM
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I'm sorry to differ but if you do that first read above line 800 this is for items to be paid by the CLIENT, and that's incorrect as I said in the 1300 section is compesation to broker NOT PAID BY LOAN PROCEEDS,ysp is Not paid by the client , it's paid by the LENDER and as such belongs exactly where I first said. Kindly examine a gfe more carefully and you'll see what I'm saying
Thank You
quote:
Originally posted by BB
quote:
Originally posted by maclin
ok you all got the respa correct, and no more 0%-3%, but to do this correctly you should spell out YEILD SPREAD PREMIUM and put dollar amount and we put it below line 1302 about 1 inch down is the proper place to put it
hope this helps
Calyx has a box in the 800 section that says Compensation To Broker and you put in the amount on line 819
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BB
989 Posts |
Posted - 04/24/2008 : 1:27:46 PM
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quote:
Originally posted by maclin
I'm sorry to differ but if you do that first read above line 800 this is for items to be paid by the CLIENT, and that's incorrect as I said in the 1300 section is compesation to broker NOT PAID BY LOAN PROCEEDS,ysp is Not paid by the client , it's paid by the LENDER and as such belongs exactly where I first said. Kindly examine a gfe more carefully and you'll see what I'm saying
Thank You
quote:
Originally posted by BB
quote:
Originally posted by maclin
ok you all got the respa correct, and no more 0%-3%, but to do this correctly you should spell out YEILD SPREAD PREMIUM and put dollar amount and we put it below line 1302 about 1 inch down is the proper place to put it
hope this helps
Calyx has a box in the 800 section that says Compensation To Broker and you put in the amount on line 819
Take a look at some of your closed loans and see where the closer puts YSP. On all of mine it shows up in the 800 section as POC. That's where Calyx has it set up to go too. |
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maclin
511 Posts |
Posted - 04/24/2008 : 1:41:05 PM
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I know you can put it there but DFI and Colorado want it spelled out and put where I'm telling you so when you get audited you won't be in trouble and your closer is wrong so now the question is will the closer pay any and all fines due to this ?????
quote:
Originally posted by BB
quote:
Originally posted by maclin
I'm sorry to differ but if you do that first read above line 800 this is for items to be paid by the CLIENT, and that's incorrect as I said in the 1300 section is compesation to broker NOT PAID BY LOAN PROCEEDS,ysp is Not paid by the client , it's paid by the LENDER and as such belongs exactly where I first said. Kindly examine a gfe more carefully and you'll see what I'm saying
Thank You
quote:
Originally posted by BB
quote:
Originally posted by maclin
ok you all got the respa correct, and no more 0%-3%, but to do this correctly you should spell out YEILD SPREAD PREMIUM and put dollar amount and we put it below line 1302 about 1 inch down is the proper place to put it
hope this helps
Calyx has a box in the 800 section that says Compensation To Broker and you put in the amount on line 819
Take a look at some of your closed loans and see where the closer puts YSP. On all of mine it shows up in the 800 section as POC. That's where Calyx has it set up to go too.
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BB
989 Posts |
Posted - 04/24/2008 : 1:48:46 PM
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quote:
Originally posted by maclin
I know you can put it there but DFI and Colorado want it spelled out and put where I'm telling you so when you get audited you won't be in trouble and your closer is wrong so now the question is will the closer pay any and all fines due to this ?????
quote:
Originally posted by BB
quote:
Originally posted by maclin
I'm sorry to differ but if you do that first read above line 800 this is for items to be paid by the CLIENT, and that's incorrect as I said in the 1300 section is compesation to broker NOT PAID BY LOAN PROCEEDS,ysp is Not paid by the client , it's paid by the LENDER and as such belongs exactly where I first said. Kindly examine a gfe more carefully and you'll see what I'm saying
Thank You
quote:
Originally posted by BB
quote:
Originally posted by maclin
ok you all got the respa correct, and no more 0%-3%, but to do this correctly you should spell out YEILD SPREAD PREMIUM and put dollar amount and we put it below line 1302 about 1 inch down is the proper place to put it
hope this helps
Calyx has a box in the 800 section that says Compensation To Broker and you put in the amount on line 819
Take a look at some of your closed loans and see where the closer puts YSP. On all of mine it shows up in the 800 section as POC. That's where Calyx has it set up to go too.
From the Washington State DFI site
WAC 208-660-430 Washington State Register filings since 2003
Disclosure requirements
5) How do I disclose my yield spread premium (YSP) from the lender?
(a) You should disclose the YSP in the 800 series of lines on the GFE. The YSP must be listed using the words "yield spread premium" and expressed as a dollar amount or dollar amount range.
(b) You must direct the settlement service provider to disclose the YSP in the 800 series of lines on the HUD-1 or equivalent settlement statement. The YSP must be listed using the words "yield spread premium" and expressed as a dollar amount or dollar amount range.
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slants
4189 Posts |
Posted - 04/24/2008 : 2:15:43 PM
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| Hmm, looks like they may both be right depending on the state. CA has it's own 2 page GFE (Mortgage Loan Disclosure) where the YSP is disclosed below line #1302, but it's on line #814 of the Hud as Broker Premium from _______________. |
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