Yield spread premium

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).”{{cite web | url = http://www.in.gov/dfi/2657.htm | publisher = Indiana Department of Financial Institutions | title = DFI: Yield Spread Premium (YSP) }}