What is the difference between a Yield Spread Premium and a Servicing Release Premium?
A broker can earn a Yield Service Premium as part of his compensation for getting you a loan. It can be based on your cost of the loan with the lender. YSPs affect the borrower's cost of the loan.
A Servicing Release Premium is a fee the lender is paid when he sells a loan to the secondary market. A SRP does not affect the borrower's cost of the loan .
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A broker can earn a Yield Service Premium as part of his compensation for getting you a 