NAMB Issues 'Call to Action' on the Fed's YSP Rule

The National Association of Mortgage Brokers is encouraging its members to comment to the Federal Reserve before its Dec. 24 deadline on a rule that will ban yield spread premium payments. A letter sent to loan brokers asks them to "express your concern" on a YSP ban by telling the Fed "how this proposal will negatively impact your business and customers." The trade group says the Fed has acknowledged that in some cases YSPs can actually help borrowers "but believes that this benefit may be outweighed by costs incurred by consumers who obtain a higher interest rate or negative loan terms" including prepayment penalties. According to new figures compiled by National Mortgage News and the Quarterly Data Report, loan brokers in the third quarter, accounted for just 14.6% of originations - half of what they did two years ago.