abstract:A yield spread premium (YSP) is the money or rebate paid to a mortgage broker for giving a borrower a higher interest rate on a loan in exchange for lower up front costs, generally paid in Origination fees, Broker fees or Discount Points. This “may [be used to] wipe out or offset other loan costs, like Loan Level Pricing Adjustments (instituted by FNMA).
If a broker puts you into a sub prime loan and you're A credit, they receive what is called the yieldspreadpremium, which also synonymous to a kick back.