Article: Why Brokers Need YSPs.(mortgage brokers, yield-spread premiums)(Excerpt)

Mr. Falk, president of the National Association of Mortgage Brokers testified on behalf of the trade group before the Senate Committee on Banking, Housing and Urban Affairs. The committee had solicited the association's views on a Department of Housing and Urban Development policy statement and what HUD should do to prevent the "abusive use" of yield-spread premiums. Excerpts from his testimony are presented as this month's Viewpoint.

Today, our nation enjoys an all-time record rate of homeownership. While many factors have contributed to this record of success, one of the principal factors has been the rise of wholesale lending through mortgage brokers. Mortgage ...

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