H.R. Bill 3915: Limit the YSP!!!

H.R. Bill 3915: Limit the YSP!!!

Limit the YSP!!!

I do not completely agree with eliminating the brokers ability to charge a rebate. As small to moderate sized business owners, most brokers use the rebate (YSP) to pay for office and marketing expenses, giving their agents a percentage of the origination. There are many other reasons brokers have to be able to charge rebates, some of which are valid and others of which are just ridiculous. The botom line is that the broker is the broker, and as a middle man between the lender and the client, should be able to negotiate rates and terms that most benfit the client and his orgnization; finding a medium between the two.

However, the problem arises when brokers take advantage of the ability to be able to charge a rebate and start to rip off clients to the point where its not beneficial to them anymore... It becomes totally in the favor of the broker... but then, on the other side of that equation, and as we all know, as the rebate goes up... the rates go up, so at some point the client should be able to say "No"... but then another arguement might be that some salesman are just good as He!!, or slick as He!!, whichever way you want to look at it, and persuades their clients into taking whatever loan they present...