Tar Heel State Bans Yield-Spread Premium for Rate-Spread Loans
September 8, 2008
North Carolina has prohibited the payment of a yield-spread premium on rate spread home loans – the first among the states to ban YSPs and likely to set the stage for similar actions elsewhere. The Tar Heel State’s enactment of H.B. 2188, which amends the state’s Rate Spread Home Loan law, will affect first-lien loans with an annual percentage rate that exceeds the yield on a comparable...