Mortgage Banks and Brokers everyday are closing home buyers and refinancers at a higher rate than they deserve! This artificial upping of the rate and the revenue created by doing so are hidden from the customer. This hidden ripping-off of the mortgage consumer is called Yield Spread Premium overchaging if the loan is originated by a broker and Service Release Premium overcharging if the loan is originated by a mortgage bank...you know Ethan Pocic Limited Jersey , Countrywide, Wells Fargo, or Bank of America.

Prof. Howell E. Jackson, Associate Dean for Research and Special Programs Harvard Law School, testified before the Senate Banking Committee on January 8 Malik McDowell Limited Jersey , 2002, and testified to the following:

"...the vast majority of borrowers pay yield spread premiums - on the order of 85 to 90 percent of all transactions. Moreover, the average amount of yield spread premiums is quite substantial, on the order of $1,850 per transaction Shaquem Griffin Limited Jersey , making these payments the most important single source of revenue for mortgage brokers. In other words, contrary to the Department's assumptions, yield spread premiums are not an optional form of financing made available to a limited number of borrowers with special needs. Rather these payments constitute by far the largest source of compensation for mortgage brokers and are imposed on almost all borrowers who obtain mortgages or refinancings through this segment of the industry."

If Professor Jackson testified on Service Release Premium that mortgage banks receive, I'm sure his statments would echo the same as above.

The Governments own numbers, which are grossly understated I might add Rashaad Penny Limited Jersey , say this Yield Spread and Service Release premium overcharging costs American home owners $16,000,000,000 a year...each any every year!
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