Mortgage Brokers Take Heat for Yield-Spread Premium Abuses, Sarbanes Warns 2001 Policy Statement Will Make Things Worse
January 21, 2002
Mortgage brokers found themselves in the hot seat while lenders got unusual praise from a consumer group for a disclosure proposal during an unusual Senate hearing this month on the “use and misuse” of yield-spread premiums. Sen. Paul Sarbanes, D-MD, chairman of the Senate Banking, Housing and Urban Affairs Committee, accused mortgage brokers of breaking the law by using yield-spread premiums to “pad their profits … without regard to any services they may provide