Can the borrower still use Yield Spread Premium to offset closing costs?
A. Yes, the final rule does not impact our ability to offer a full range of interest rate and fee combinations, so long as the exchange between the loan price and transaction costs have no bearing on loan originator compensation. The borrower may use credits from the interest rate chosen to pay for third party fees in both borrower paid and lender compensated transactions. The borrower cannot use the YSP credit to pay any portion of the originator compensation.
