The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (24846)	1/18/2005 9:45:30 AM
From: C.N.S.	Read Replies (2) of 110194

Russ, This is a just a partial answer to the questions you posed (and only two anecdotes at that). (1) Many wholesale lenders are currently adding YSP (Yield Spread Premium - the backend fee) recapture clauses in their contracts with mortgage brokers by which the broker has to refund the entire YSP if the loan is refinanced in one year or less (some wholesale lenders specify 6 months). The mortgage broker community is especially incensed because these clauses are in effect even if the churning is not the result of the broker or the lender (ie even if a different mortgage company is involved with the customer). (2) Also, I can point to anecdotes by brokers that mention about how entire departments at some of their wholesale lenders have a "lot of time on their hands" (much better customer service & individual attention which wasn't there earlier).

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