TITLE: Predatory Mortgage Lending Practices: Abusive Uses of Yield Spread Premiums

CIS-NO: 2003-S241-9  
SOURCE: Committee on Banking, Housing, and Urban Affairs. Senate  
DOC-TYPE: Hearing Retrieve the full text of testimony  
DOC-NO: S. Hrg. 107-857  
DATE: Jan. 8, 2002  
LENGTH: iii+183 p.  
CONG-SESS: 107-2  
ITEM-NO: 1035-C; 1035-D  
SUDOC: Y4.B22/3:S.HRG.107-857  
 
GPO-STOCK-NO: 552-070-29482-1.

SUMMARY:
Hearing to examine the predatory misuse of and current HUD regulations for yield spread premiums (YSPs).
 
YSPs are indirect payments made to mortgage brokers by mortgage lenders for the facilitation of loan transactions with interest rates that exceed the rates lenders would otherwise offer borrowers. YSPs are typically used to compensate mortgage brokers for their services or to finance the home loan closing costs of borrowers.
 
Supplementary material (p. 40-183) includes submitted statements, witnesses' written statements and written replies to Committee questions, an article, correspondence, and:
   -- Guttentag, Jack, "Another View of Predatory Lending" Aug. 21, 2000, with bibliography (p. 125-154).

CONTENT-NOTATION: Home mortgage and equity loan abuses involving yield spread premiums

DESCRIPTORS:  
    BIBLIOGRAPHIES; BUSINESS ETHICS; CONSUMER CREDIT; DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; FINANCIAL REGULATION; HOUSING REGULATION; INTEREST RATES; MORTGAGES

03-S241-9 TESTIMONY NO: 1     Jan. 8, 2002 p. 4-14
 
WITNESSES (and witness notations):
   HIERS, BEATRICE
   HERROD, RITA
   JOHNSON, SUSAN M. (all alleged predatory YSP victims)
 
STATEMENTS AND DISCUSSION:
   Experiences with alleged predatory YSPs.
 
CONTENT NOTATION:
   Home mortgage and equity loan abuses involving yield spread premiums
 
 
03-S241-9 TESTIMONY NO: 2     Jan. 8, 2002 p. 14-39, 54-96, 155-171
 
WITNESSES (and witness notations):
   JACKSON, HOWELL E. (Associate Dean, Research and Special Programs, Harvard University School of Law)
   COURSON, JOHN (Chairman-Elect, Mortgage Bankers Association)
   FALK, JOSEPH L. (President, National Association of Mortgage Brokers)
   RHEINGOLD, IRA (Executive Director, National Association of Consumer Advocates)
   OLSON, DAVID A. (economist)
   DONALDSON, DAVID R. (attorney)
 
STATEMENTS AND DISCUSSION:
   Perspectives on YSP misuse and regulation, with recommendations; opposing views on the effectiveness of HUD YSP regulations; elaboration on YSP misuse issues and developments.
 
INSERTION:
   -- Jackson, H. E.; and Berry, Jeremy, "Kickbacks or Compensation: The Case of Yield Spread Premiums" Jan. 8, 2002 (p. 155-171).
 
CONTENT NOTATION:
   Home mortgage and equity loan abuses involving yield spread premiums
 
TESTIMONY DESCRIPTORS:
   BERRY, JEREMY; MORTGAGE BANKERS ASSOCIATION; NATIONAL ASSOCIATION OF CONSUMER ADVOCATES; NATIONAL ASSOCIATION OF MORTGAGE BROKERS

LOAD-DATE: July 30, 2003