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).”[1]
^"DFI: Yield Spread Premium (YSP)". Indiana Department of Financial Institutions.
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A yieldspreadpremium (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...
indication of the risk premium for one investment product over another. The phrase is a compound of yield and spread. The "yieldspread of X over Y" is generally...
of the term premium, long-term bond yields tend to be higher than short-term yields and the yield curve slopes upward. Long-term yields are also higher...
serviced as opposed to sold/brokered. Brokers must also disclose Yieldspreadpremium while Bankers do not. This has created an ambiguous and difficult...
other hand, earning the same yieldspreadpremium, disclose the additional fee to the consumer because the yieldspreadpremium becomes an additional fee...
Spread trades are usually executed with options or futures contracts as the legs, but other securities are sometimes used. They are executed to yield...
The yield to maturity (YTM), book yield or redemption yield of a fixed-interest security is an estimate of the total rate of return anticipated to be...
Equity Risk Premium: A Benchmark Model Ruben D. Cohen (2002) “The Relationship Between the Equity Risk Premium, Duration and Dividend Yield (download)...
These payments on interest leave the principal balance unchanged. Yieldspreadpremium A par rate is the lowest interest rate a borrower qualifies for,...
item/property Words of conveyance Wraparound mortgage Writ of attachment YieldYieldspreadpremium Zoning Zoning map Zoning ordinance – local ordinance that controls...
behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason...
than its par value, the bond is selling at a premium. For this and other relationships between price and yield, see below. If the bond includes embedded...
no-arbitrage assumption, the net premium paid out to acquire this position should be equal to the present value of the payoff. Box spreads' name derives from the...
the airline. Yield management spread to other travel and transportation companies in the early 1990s. Notable was implementation of yield management at...
unit of par value, whereas current yield is the ratio of the annual coupon divided by its current market price. Yield to maturity is a bond's expected internal...
inverted yield curve is a yield curve in which short-term debt instruments (typically bonds) have a greater yield than longer term bonds. An inverted yield curve...
Corporate debt yields are less than personal debt rates. As such, premium financing may carry a negative spread for the client financing the premiums. Indexed...
also increase the borrower's interest rate, but will improve the yieldspreadpremium which the loan originator may receive as compensation from the lender...
redemption date. Yield: Yield of the convertible bond at the issuance date, could be different from the coupon value if the bond is offering a premium redemption...
Party of Greens and the Left Future (YSP), a Turkish political party Yieldspreadpremium, a cash rebate paid by a lender to a mortgage broker if the broker...
bull spread. A bear spread is a spread where favorable outcome is obtained when the price of the underlying security goes down. If the premiums of the...
issue price. In certain cases, mainly in the high-yield debt market, there can be a substantial call premium. Thus, the issuer has an option which it pays...
The equity premium puzzle refers to the inability of an important class of economic models to explain the average equity risk premium (ERP) provided by...