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    Independent mortgage reps have a built-in incentive to offer higher interest rates than otherwise available on home loans. Lenders pay brokers increasing “rebates” or “yield spread premiums,” the higher the interest rate on the loan. Federal regulations currently require NO disclosure of this incentiv

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    Independent mortgage reps have a built-in incentive to offer higher interest rates than otherwise available on home loans. Lenders pay brokers increasing “rebates” or “yield spread premiums,” the higher the interest rate on the loan. Federal regulations currently require NO disclosure of this incentiv

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    to offer higher interest rates than otherwise available on home loans. Lenders pay brokers increasing “rebates” or “yield spread premiums,” the higher the interest rate on the loan. Federal regulations currently require NO disclosure of this incentiv
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    brokers increasing “rebates” or “yield spread premiums,” the higher the interest rate on the loan. Federal regulations currently require NO disclosure of this incentiv
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    e on the loan. Federal regulations currently require NO disclosure of this incentive, and State requirements vary widely. Some lenders disclose, but not always clearly.

    The incentive can range from less than a quarter point to over three points (and varies by lender). A “point” is 1% of the loan amount. Each lender has a “par” rate (no rebate) with each rate above that yielding progressively more rebate. M

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