Americas Watchdog & Its National Mortgage Complaint Center have been demanding the U.S. Congress level the playing field on a mortgage fee kick back called a yield spread premium for years. What is a yield spread premium and what is wrong with the current U.S. mortgage system? A yield spread premium is a kick back a mortgage broker or a bank gets for inflating a borrowers interest rate when the finance or refinance their home. What is the double standard? Mortgage brokers must disclose to a homeowner if they received this mortgage fee kickback, banks, or mortgage bankers have no such obligation. As a result of this 50 million current U.S. homeowners pay a higher mortgage payment than they should have. According to Americas Watchdog, "There is one slight problem, the mortgage banks and their trade groups have paid off the U.S. Congress, to look the other way on this outrage. Now the taxpayers are on the hook, and things need to change." The National Mortgage Complaint Center's Web site is located at http://NationalMortgageComplaintCenter.com. (PRWeb Jan 13, 2009)
Read the full story at http://www.prweb.com/releases/2009/01/prweb1857604.htm
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[Source: PRWeb: Home and Family Banking / Personal Finance]
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