State Senate Passes Bill Banning ‘Predatory’ Yield Spread Premiums
The State Senate passed a bill yesterday banning “yield spread premiums,” which are payments given to mortgage brokers or lenders for directing borrowers to more expensive loans. The bill was sponsored by Senator Liz Krueger, who described yield spread premiums as a “predatory practice” that contributed to the foreclosure crisis.
“Yield spread premiums have created perverse incentives, driving irresponsible, dangerous activity in the mortgage market,” Ms. Krueger said. “It’s a predatory practice, and it’s passed time we banned it–permanently.” Read More
