Scott Veerkamp is the President of the Franklin Township School Board and a member of the National Association of Realtors. I have documentation of two loans initiated by Scott containing Yield Spread Premium...
Loan 1: Contains a $1, 440 Yield Spread Premium on a $120, 000 property.
Loan 2: Contains a $4, 799 Yield Spread Premium on a $150, 000 property.
(a) The following documentation is not an example of a loan initiated by Scott Veerkamp. I am merely providing this example to show the financial impact of YSP on the homeowner.
(b) On average, mortgage brokers receive 1% of the loan amount each time they raise the interest rate .25%. In other words, the lender pays the broker a "kickback" for increasing the interest rate on the loan.
(c) What is the difference in cost between a 6% rate and a 6.5% rate on a $200, 000 loan over 30 years? Here is the answer according to bankrate mortgage calculator: -($23, 414.40)
(d) On the mortgage above, the broker would receive a $4, 000 kickback or (2% of the loan amount) for increasing the interest rate .5%. Therefore, a family would pay an extra -($23, 414.40) over 30 years because they did not receive the interest rate they qualified for.
(e) I believe most families would prefer to invest the $23, 414.40 in EDUCATION. Clearly, this makes more sense than "wasting it" with a predatory loan.
(f) Therefore, I am asking Scott Veerkamp to answer the following questions: 1. How does Predatory Lending "protect and promote the interest of the client"? 2. How does Yield Spread Premium "keep the interest of the client above all else"?
*You can find YSP on the settlement in your mortgage documents. It will be listed as POC or "paid outside of closing". Was this information helpful? | 
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