ABOUT THE AUTHOR

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Fatima graduated with a Bachelor's degree in Economics from Columbia
University and received a Masters in Economics from Singapore National
University. Fatima comes from a political background, her father Mir Murtaza
Bhutto - an elected member of Pakistan's parliament - was assassinated by
state police in 1996. His sister, Benazir Bhutto, was Prime Minister at the

time of his killing. Fatima is the author of two books, understanding the
financial system published when she was 15 years old and basics of debt
management. Both were published by Oxford University Press.
Fatima currently writes a weekly column for Pakistan's largest Urdu
daily newspaper, Daily Jang, and its English sister paper, The News
International. Recently She has completed her MBA in Finance from Harvard
University in 2006. Her diary from Tehran is the second the papers
printed; Fatima also wrote a weekly diary from Lebanon .
 How to Read a Wholesale Lender Rate
Sheet and Beat Mortgage Originators at
Their Own Game
FATIMA BHUTTO
Mortgage Banks and Brokers everyday
are closing home buyers and refinancers
at a higher rate than they deserve! This
artificial upping of the rate and the
revenue created by doing so are hidden
from the customer. This hidden ripping-off
of the mortgage consumer is called Yield
Spread Premium overchaging if the loan
is originated by a broker and Service
Release Premium overcharging if the loan
is originated by a mortgage bank...you
know, Countrywide, Wells Fargo, or Bank
of America.

Prof. Howell E. Jackson, Associate Dean

for Research and Special Programs
Harvard Law School, testified before the
Senate Banking Committee on January 8,
2002, and testified to the following:

"...the vast majority of borrowers pay

yield spread premiums - on the order of
85 to 90 percent of all transactions.
Moreover, the average amount of yield
spread premiums is quite substantial, on
the order of $1,850 per transaction,
making these payments the most
important single source of revenue for
mortgage brokers. In other words,
contrary to the Department's
assumptions, yield spread premiums are
not an optional form of financing made
available to a limited number of
borrowers with special needs. Rather
these payments constitute by far the
largest source of compensation for
mortgage brokers and are imposed on
almost all borrowers who obtain
 mortgages or refinancings through this
segment of the industry."

If Professor Jackson testified on Service

Release Premium that mortgage banks
receive, I'm sure his statments would
echo the same as above.

The Governments own numbers, which

are grossly understated I might add, say
this Yield Spread and Service Release
premium overcharging costs American
home owners $16,000,000,000 a
year...each any every year!

To beat these guys at their own game,

you simply must learn how they price out
a loan including this rip-off! Reading this
article is a good start, however, the
complete guide to eleminated Yield
 Spread and Service Release Premium
overcharging is outlined in my ebook,
Mortgage Secrets Exposed!. See the
resource box at the bottom for more
information.

Understanding how to price out a loan by

reading Mortgage Bank Rate Sheets is
really quite easy though it may seem
intimidating at first. It will all become
clear as you read this narrative on how
we do it at our company, Integrity First
Mortgage, Inc. in Denver. So, settle in and
take the 10 minutes to read this article
and understand this practice.

Doing so will save you 10s of $1,000 over

your lifetime owning and financing
houses. A small price to pay indeed!
 Here we go!

All of mortgage lenders we work with at

Integrity First Mortgage, Inc., furnish us
with rate sheets on a daily basis via the
internet or by fax. We follow the rates
several times a day in order to properly
quote the best available rate and term to
our customers. When reviewing the rate
sheet, we also determine which rate will
NOT create a rebate from the lender
known as a Yield Spread Premium. We
believe upping your rate to make
additional revenue over the 1%
origination fee is deceptive, dishonest,
and a bad business practice. And believe
me, other companies do not hold that
opinion.

Let us use the rate sheet data below to

demonstrate how we determine the rate
 that we quote to our borrowers. We will
also show you using the corresponding
HSH Survey data how other Brokers and
Banks are making enormous undisclosed
profits in the form of Yield Spread
Premium.

Lender Rate Sheet (see below ) data was

collected from a real Wholesale Lender
(Ampro Mortgage ) Rate sheet dated
03/10/2006. You can confirm the HSH
data is real as well by visiting HSH dot
com.

30 Year Fixed

Rate 15 Day 30 Day 45 Day

5.750% 1.350 1.475 1.600

5.875% 0.611 0.736 0.861
 6.000% 0.039 0.164 1.826
6.125% (0.392) (0.267) (0.142)
6.250% (0.773) (0.648) (0.523)
6.375% (1.180) (1.055) (0.930)
6.500% (1.623) (1.498) (1.373)
6.625% (2.029) (1.904) (1.773)
6..750% (2.280) (2.155) (2.030)

HSH ASSOCIATES The Nations Largest

Publisher of Mortgage
The Nations Mortgage Market: Average
Rates for Residential Mortgages Week
ending March 10, 2006
Owner-occupied 1-4 Family
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Fatima
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