Vote Smart's Synopsis:

Vote to pass a bill that requires mortgage brokers to disclose yield spread premiums to borrowers.

Highlights:

- Defines "yield spread premium" as a payment made by the lender to the mortgage broker based on the difference between the interest rate assigned by the broker and the market rate the borrower qualifies for [sec. 4 (17)]. - Expands the disclosure requirements for mortgage brokers to include the full transaction costs incurred by the buyer if the broker receives a yield spread premium from the lender, and the exact dollar amount of the estimated yield spread premium [sec. 2 (3) (a)]. - Requires that mortgage brokers immediately refund the borrower the amount of the yield spread premium, or any gain paid between a mortgage broker and a lender, if the amount of compensation is greater than the original good faith estimate [sec. 3 (4) (a)]. - Defines "original good faith estimate" as a reasonable disclosure of the itemized transaction costs provided to the borrower at least 30 days prior to closing on the loan [sec. 3 (c)]. - This is a substitute bill sponsored by the Senate Consumer Protection & Housing Committee.

Full Bill Text