what is a yield spread premium ysp 
a yield spread premium ysp is a form of compensation that a mortgage broker acting as the intermediary receives from the originating lender for selling an interest rate to a borrower that is above the lender s par rate for which the borrower qualifies the ysp can sometimes be applied to cover costs associated with the loan so the borrower isn t on the hook for additional fees as a result of legislation that was passed in 1999 the yield spread premium had to be reasonably related to the actual services the mortgage broker performs for the home buyer 1 the yield spread premium also had to be disclosed by law on the hud 1 form when the loan is closed the 2010 dodd frank financial reform bill subsequently banned yield spread premium altogether a prohibition put into place to protect consumers after the 2008 09 financial crisis 2