In a recent closing transaction the loan broker "earned" the lordly sum of over $21K .  It turns out that his fee for brokering the loan was actually in excess of 4.5% of the loan amount.  SERIOUSLY!!

Did I not read that brokers could no longer charge yield spread premiums?  Yes, I did.  But, as it turns out they are no longer called yield spread premiums, now they are called discounts.  And because of the convuluted way in which the current HUD-1 discloses these fees being paid to broker, the buyer is totally unaware of the fact that the lender is still "kicking back" a fee to the loan broker. 

I am tired of seeing the consuming public being misled in this way.  

Sadly, unless I want to spend endless hours that I don't have to force an audit and review of this loan broker's methods they will continue to get away with this shady business practice.  It's just so WRONG!