Americas Watchdog Blasts The US Congress For A Mortgage Fee Kickback That Affects Most US Homeowners

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For over five years Americas Watchdog's National Mortgage Complaint Center have been attacking a gigantic mortgage kickback scheme called a yield spread premium. What is a yield spread premium? "A yield spread premium is a mortgage kickback fee a bank, mortgage banker or mortgage broker gets for inflating a borrowers interest rate. Banks & mortgage bankers get the very same kickbac, they just don't have to disclose it-brokers do. Why is this timely? Millions of Americans are losing their hoomes because of mortgage products that were built around the yield spread premium. The National Mortgage Complaint Center's Web site is located at Http://NationalMortgageComplaintCenter.Com.

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The US economy is in a shambles in part because of banks, mortgage bankers, homebuilders, and even mortgage brokers deceiving consumers with the yield spread premium kick back scheme. If homeowners had actually seen what the bank, mortgage banker, or broker was actually making on the deal, we don't think the homeowner would have done the loan.

Americas Watchdog and its National Mortgage Complaint Center have been blasting away at the worst mortgage double standard in US history, called a yield spread premium for years--to an unreceptive US Congress. What is a yield spread premium? A yield spread premium is a kickback a mortgage broker, bank or mortgage banker gets for inflating a homeowner's interest rate/monthly mortgage payment, over the best rates available. According to Americas Watchdog's National Mortgage Complaint Center, "the reprehensible part about this yield spread premium double standard, is mortgage brokers rarely if ever explain, or tell the homeowners about this fee, that is typically in the thousands of dollars, even though they are required to disclose it. Banks on the other hand, have no such disclosure requirement, even though they get they exact same kick back." The National Mortgage Complaint Center's web site is located at Http://NationalMortgageComplaintCenter.Com.

  • How many US homeowners have been conned by the yield spread premium kick back scheme? The National Mortgage Complaint Center estimates its over 95%+ of all existing US homeowners.
  • How much is the typical yield spread premium? The National Mortgage Complaint Center estimates its between $2500 to $5000 per homeowner, or about $100 to $300 per month in higher monthly mortgage payments, per homeowner.
  • Why is this wrong? According to the National Mortgage Complaint Center, "any kind of kickback is wrong. We are in the worst mortgage mess in our nations history, and the yield spread premium kick back scheme has a lot to do with it. Most mortgage brokers went crazy from 2002-2007 gouging homeowners with poorly disclosed yield spread premiums, & banks and mortgage bankers did the very same thing-they just didn't have to disclose it."
  • Why do mortgage brokers have to disclose a yield spread premium & bank and mortgage bankers do not? "The reason for the yield spread premium kick back scheme double standard is really easy. Banks, mortgage bankers and homebuilders give a lot more money to the US Congress than do mortgage brokers. As a result we get a poorly disclosed mortgage fee double standard, that has literally cost US homeowners hundreds of billions of dollars over the years in higher mortgage payments."

A prayer for relief from the Obama Administration: The National Mortgage Complaint Center says, "African Americans and working class Americans have been disproportionately affected by this ridiculous yield spread premium double standard. We literally sat in a McDonalds, in Compton/Watts, California in 2006, and reviewed, now under investigation Countrywide Home Loan documents, where the homeowner was being offered a no appraisal fee, no credit check, $10,000 money back loan." According to the group, there was just one slight problem, "Countrywide had just refinanced the borrower six months earlier & the new loan came with a 4 point discount fee. Countrywide had no obligation to tell the unsuspecting borrower they were also making extra undisclosed thousands of dollars on the deal, because they were a bank, & banks and mortgage bankers do not have to disclose the yield spread premium mortgage kick back scheme. Other banks and mortgage bankers were also doing this. Many of these people have since lost their homes."

According to Americas Watchdog's National Mortgage Complaint Center, the US Congress has to stop taking campaign donations, if the member sits on a Congressional, or Senate Committee, that has oversight responsibility over the industries, or groups, that as it turns out are the Congress person's or Senator's biggest campaign donators. Congress and the US Senate need to immediately push through reforms that require banks and mortgage bankers to disclose mortgage kickbacks called yield spread premiums--just like mortgage brokers are required to do.

"The US economy is in a shambles in part because of banks, mortgage bankers, homebuilders, and even mortgage brokers deceiving consumers with the yield spread premium kick back scheme. If homeowners had actually seen what the bank, mortgage banker, or broker was actually making on the deal, we don't think the homeowner would have done the loan."

Americas Watchdog's National Mortgage Complaint Center is all about consumer protection and corporate responsibility. Their web site is located at Http://NationalMortgageComplaintCenter.Com.

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THOMAS MARTIN
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