In general we are excluding YSPs and that sort of lender-paid compensation unless the state law specifically references it. The only two that are doing that at the moment that I know of are Illinois and Georgia. So for California, we don't consider YSPs in the P&F calculation. Our legal dept's view is that the point of the law is to calculate points and fees paid by the BORROWER, rather than ALL P&F paid, unless it's specifically stated otherwise.
Just my 2 cents!
I disbelieved what he was saying so hard, I probably created an alternate universe where it wasn't true.