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I am a creator of mortgage and I am creating a marketing plan for a priviledged few. I have to give up their standard fee 1% origination and want to convince my prospects that I can not do so while the percentage of the yield spread. So I have documentation that proves my usual 2% on the back is a good industry standards. Nobody knows where to find this information?

3 Thoughts on What is the mortgage industry, the average yield spreads?
  1. Reply
    jmadams74
    February 19, 2011 at 1:49 am

    the average points to either the lender or the originator are not “out there” for everyone to see. You may want to contact your state agency in charge of lending and determining RESPA guidelines to find out how much you can receive in Yield or points, but in FLA and GA where I have done wholesale loans, 2% on the back is the most we have ever given to an originator/broker.

  2. Reply
    Kevin B
    February 19, 2011 at 2:01 am

    I’ve found that you’re better off giving them the control. Tell them that as a preferred customer you will charge 2 points. They can take that as front points or ysp. They decide. The other guy is right, you won’t find the documentation you’re looking for.

    Oh, they know that what you are offering is fair. Especially if they’ve bought a house before. Even if they didn’t, they’re probably comparing your offer to other companies they’ve shopped for in their mind. They’re going to keep saying that you’re charging too much. That’s their job as consumers. Set your price and stick to it. If you’ve done your job of earning their trust, they’ll stick with you.

  3. Reply
    FinanceMan
    February 19, 2011 at 2:18 am

    I am a mortgage loan originator of many years. I do not understand why this has become a subject of discussion. When you buy your car, does the car dealer discuss his profit margin, and then proceed to negotiate it with you? When you get a contract for home improvement does your contractor discuss his profit margin and negotiate it
    with you? When you buy anything….from food to clothes to travel to car rental, what business gives the customer the power to determine what the business profit should be? Instead of dropping your pants on the price, you should emphasize the integrity and quality of your service, and explain why your work is worth what you charge. Integrity and quality is what’s suppose to bring repeat business, not free work. You are suppose to be in business to make money, not to see how much of your work you can give away for free.

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