NAMB Seeks Compromise on YSPs

The National Association of Mortgage Brokers is hoping to find some middle ground with House Democrats on a provision in a newly introduced predatory-lending bill that would ban "incentive" payments to originators, including yield-spread premiums that are a broker's main source of compensation."I understand their intent is aimed at incentive payments," NAMB executive vice president Roy DeLoach said, where a securitizer pays an additional premium for certain types of loans. The NAMB agrees that incentive payments should be banned. "We want to clarify that an origination fee can be paid by the lender to the brokers," Mr. DeLoach said. Otherwise, the mortgage brokers will be forced to oppose the bill introduced on Oct. 22 by Reps. Barney Frank, D-Mass., Brad Miller, D-N.C., and Mel Watt, D-N.C. "The indirect compensation mortgage brokers receive from lenders is a defendable fee that actually lowers closing costs to consumers," NAMB president George Hanzimanolis said. The NAMB can be found on the Web at http://www.namb.org.