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#1831646 - 07/10/13 03:06 PM Finance Charge and Sales of Mortgage
Wonderofitall Offline
100 Club
Wonderofitall
Joined: Sep 2010
Posts: 223
Out West
I think I'm confusing myself with some yield spread premium threads.

Bank originates and sells consumer mortgates on secondary market to Investor. Investor buys a mortgage for 102% of face amount shortly after closing. Should the 2% Bank earnings be included in the borrower's finance charge and/or APR or is the mortgage sale outside the scope of 1026.4?

Thanks!
Last edited by Wonderofitall; 07/10/13 03:14 PM.
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Lending Compliance
#1831702 - 07/10/13 04:38 PM Re: Finance Charge and Sales of Mortgage Wonderofitall
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,410
Is the 2% a yield spread or a servicing release premium?
If it's the latter, it has nothing to do with the borrower.

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#1831810 - 07/10/13 07:10 PM Re: Finance Charge and Sales of Mortgage Wonderofitall
Wonderofitall Offline
100 Club
Wonderofitall
Joined: Sep 2010
Posts: 223
Out West
It's a SRP. Thanks, TR!
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