Charlene,

I think there may be some confusion with Yield Spread Premiums. I think you are referring to “employees” acting as originators, etc. within a lender. If you are an independent not acting as an employee of the lender then the CFPB/FED rules are different.

My understanding is an "employee" of a lender shall not be compensated based on yield spread premiums or, stated another way, any compensation based on the interest rate.

I think the reasoning is having front-line employees paid in such fashion puts the lender into a direct conflict with the borrower as a customer. However, if the YSP (or other labeled compensation) is by a third party such as a mortgage broker not in the employment of the lender then compensation based on interest rates continues.

That which they are attacking is enticing employees in a particular organization such as Wells Fargo from being compensated on how deeply they can stiff a prospective borrower. However, the stiffing continues when the broker is not an employee.