Why Oh Why YSP? Why Mortgage Brokers Can Price Better

Once upon a time I was a mortgage broker. During those years we fought hard for our clients to insure we were finding the best deal for them and earning enough revenue to pay our employees and keep an office running efficiently. Along came a travel agent turned radio talk show host(1) by the name of Clark Howard who proceeded to cast stones and still does so. Continuously bombarding mortgage brokers as useless middle persons Howard continually urges his growing listening audience to bypass the smaller more local offices and go straight to the lender, where they can be screwed and never know it. The happy ending of this story is to come yet in this article.

Currently there is legislation by Senator Barney Frank (D-MA) in which he seeks to further control the already highly regulated mortgage broker industry. Comments from other leader such as Barrack Obama (D-IL) and Hillary Clinton (D-NY) also mention, most specifically, mortgage brokers and how they have steered the country down a winding staircase into the deep recesses of financial failure. The happy ending to this story, likewise, is yet to come.

Please allow me to introduce your friend and mine, Yield Spread Premium; YSP for short. We are going to take a short journey to the soup aisle at your favorite grocer's on the way to meet Mr. YSP. Go ahead and pick up that can of store-brand chicken noodle and take it with us to the check out stand. Now go ahead and pay the clerk the one dollar and thirty six cents with tax. Let us talk about that soup you just purchased on the way to meet Mr. YSP.

Hold that can in your hand and look at it closely. You can see at least two components and feel the weight of a third component. You can see the can and the label and you believe there is soup inside matching the description on the label. Since there is a can and a label you can also see did you really just buy the soup or did you also buy the can and the label? Obviously you bought it all as one unit but how much did you pay for the can? What about the label how much of the price of the purchase accounted for the label?

The secret is you don't know and you don't care. All you really care about is that you purchased a can of soup and got it for a fair price. The components were not separately priced. Some of the components were listed on the label but they did not include the label and the can. Somewhat of a mystery the cost of the label and the can. Look, we are getting close to Mr. YSP's place.

What possible similarities could their be between a can of soup and a mortgage you are wondering. Only that they are both something you should shop for and understand. You don't care about the price of the can or the label because we are talking about items which ad pennies to the overall cost, right? I mean at the most the can and the label likely didn't add more than three or four cents to the cost. So two percent extra that you aren't told about in the price really doesn't make that much difference because you are talking about pennies.

Do you know the difference between the cost of obtaining a mortgage at a bank or direct lender and obtaining a mortgage through a mortgage broker? Do you know that mortgage brokers have access to something called "wholesale rates"? I bet you didn't know that a mortgage broker, by federal law, is the only one of those three required to tell you about every penny of profit they make on every home loan. It is true. The bank and the direct lender are not subject to the federal law requiring mortgage brokers to disclose the price of the "can" and the "label". So if mortgage brokers are required to disclose every penny they make from your transaction why aren't the banks and direct lenders? We will get to that I assure you but here we are at YSP's place.

Yield Spread Premium meet my pupil. Pupil, Yield Spread is the amount of income a mortgage broker earns from the lender when they find a wholesale mortgage that meets your needs and you accept that mortgage for a market competitive interest rate. Much like the way the car manufacturers pay the car dealer a portion of the retail price when they sell a car. Without YSP the front end fees would be higher and the loan would cost more. While we are on the subject let me remind you of the Columbia University Study which unequivocally demonstrates the cost of doing business with a mortgage broker is less than the cost of going directly to a bank or lender.(2) In fact, a talk show host named Clark Howard recently had to eat some words. Then he forgot again and is making a lot of unfounded accusations.

YSP works like this: If the borrower qualifies for a loan at six percent interest and the mortgage broker gets that same loan for five point seven five percent interest there is a little profit between the "wholesale" rate and the "retail" rate. The wholesale rate is call the "par" rate. Since there is a difference between the wholesale rate and the retail rate the lender will, after the closing, pay the broker a fee for the difference and that fee is called the Yield Spread Premium.

Since the cost of originating a loan has risen to about twenty-five-hundred dollars(3) the mortgage broker, just like the bank or lender, must make a minimum profit just to stay in business. Some costs are based on percentages and not fixed numbers so other loans may cost even more than that to originate. Originate means attract the client, take the application, make all of the necessary steps to get that loan to closing.

If that can of soup was like a mortgage from a mortgage broker you would individually pay for the carrots, the chicken, the salt, the pepper, the cooking time, the quality control costs, the water, the chicken, the celery, the can, and the label. You wouldn't pay any more for the soup but you would see the cost of each little component on you receipt. Only then your receipt would be called a Housing and Urban Development Settlement Costs document, or HUD-1. However, even though the price would be the same at a bank or direct lender, you would never know the cost of the can because the law does not require the banks and lenders to disclose that cost. Only the broker is required to disclose.

YSP is part of the earnings a mortgage broker makes. The lender still makes a lot more than the broker they just don't have to say. Lenders are paid what is called a Service Relief Premium if they sell the loan or a Servicing Premium if they keep the loan on their books. Usually SRP is anywhere from three percent to ten percent depending on the sale of the loan on the secondary market which has nothing at all to do with the borrower and happens after the closing is done.

Here is the bottom line and why you need to know about YSP but why elected officials like Dodd and Franks are way out of their league and intending to harm you more than help you by singling out mortgage brokers and eliminating this form of commission. Go to a lender directly and get a quote then go to a mortgage broker and get a quote. You will see that they are within a few dollars either way. The broker will have access to many lenders and will be able to shop several lenders and banks with one application. Yes, it has been abuse, but that was because you didn't know the trick. Now you know.

Brokers, like lenders, banks and you at your job, must get paid. Only a small percentage of brokers are abusers of the system. Any further legislation is going to limit you on your choices and deprive you of ever knowing how much anyone makes. Why else would lenders and banks be campaigning against mortgage brokers and funding campaigns for the people who support the elimination of YSP which would effectively shut down the cheaper wholesale mortgage broker industry? Because banks and lenders do not have to disclose their profit like mortgage brokers.

Yield Spread Premium is actually your best friend in the mortgage business.

(1) Clark Howard Biography - http://580wdbo.com/clarkhoward/bio.html

(2) NAMB Report on the Columbia University Study -
http://www.namb.org/Images/namb/documents/PDF/2005-Apr-07_NewStudy.pdf
(3) NAMB Update http://www.namb.org

Fighting with Gabby - Minha Vida no Brazil

jumped in the pool one hot day at Lenny's first host family's house, we had noodle fights, hahaha and dont you just LOVE Gabby's speedo?!? Pretty awesome, né? Enjoy!



http://www.youtube.com/watch?v=txrBralflD4&hl=en

Quick Healthy Breakfast Ideas For Kids

Breakfast is the most important meal of the day and is vital to your child's health and growth. A nutritious, healthy breakfast is also an excellent start to your child's school day. It's the brain food they need to be alert and active for the day's studies.

Most often, it's hard to get children to sit down in the morning to a full-course meal. But there are other quick, healthy alternatives if you find your child too sleepy for a full meal or if time is an issue. Breakfast may be more encouraged if you get your little one involved in actually preparing the morning meal. Try it once and see what comes of it. Let them know how important their help in the kitchen really is to you. This may also be a good time to get your whole family gathered around the table. It all depends on your family's schedules and activities.

If you find getting your children interested in a full meal in the morning to be challenging...don't panic. It is very important to at least get them to eat some other quick healthful choices. There are various quick, healthy options for you to choose from. Let's explore...

Below are some food choices to get your kids moving in the morning

Smoothies

Drinking a refreshing smoothie makes it a lot easier to add more fruits and veggies to your diet, and kids love them. Smoothies give you a colorful variety of fruits and veggies. They are also easy and fun to make.

Banana Pineapple Smoothie

Ingredients

1 cup cubed fresh pineapple
2 bananas sliced
1 cup unsweetened soy milk
1 cup non-fat yogurt (any flavor)
Ice cubes
Sweetener if desired

Directions

Combine fresh pineapples, bananas, soy milk, yogurt, and ice cubes in a blender.
Blend until smooth. Serves about 4.

Carrot Apple Juice Smoothie

Ingredients

1 cup peeled and diced carrots
1 1/2 cup apple juice
1/2 cup cold water
Ice cubes

Directions

Toss all ingredients into a blender. Blend until smooth

Muffins and Bagels

For healthier muffins or bagels of course, you need to bake the homemade type. It is best to make them with whole wheat flour. Homemade bran muffins are excellent with some low fat butter and low sugar jelly or jam and are also a good source of fiber. Apple or pear butter on top will also give you some added variety.

Below is a nutritious recipe I think your kids will take a liking to. Who says you can't have pizza for breakfast?

Muffin Pizza

Ingredients

2 english muffins
pizza sauce
grated mozzarella cheese
1 slice low-fat deli chopped ham
2 scrambled eggs (may substitute egg beaters)

Directions

Cut the 2 muffins in half. Top with pizza sauce, grated cheese, chopped ham, and eggs. Place under toaster oven for a minute or two. Adjust settings to your liking. Offer your child a piece of fruit on the side.

Fruit Salads

There are many variations of fruit salads and really, they are great anytime of the day...not just for breakfast. Fruit salads are excellent with some non-fat yogurt dip.

Breakfast Casseroles

There are many types of casseroles for breakfast. And to make them healthy, you can add any kind of veggies you like and is highly recommended to add to your daily intake of vegetables. Using turkey bacon or sausage and low fat cheeses is ideal when it comes to healthy casseroles. Also using an egg substitute such as egg beaters will give you less fat and cholesterol. With casseroles, you can make them ahead the night before and pop them in the oven in the morning.

Last Minute Breakfast

Always have dried fruits, nuts, dates, sunflower seeds, pumpkin seeds, and trail mixes on hand to toss into sealed plastic bags for those mornings when time just doesn't permit for a breakfast meal. Make for sure each child gets one of these bags before leaving the house.

There you have it...just a few ideas to keep breakfast healthy for your little ones. Also...don't forget to eat a good breakfast yourself.

Where and How to Buy Low Carb Asian Noodles

The word is out! Low carb Asian noodles: the next best way to lose weight quickly and naturally boasting some pretty spectacular properties.

But if they are this good how easy is it to get ones' hands on them?

Purchasing Asian noodles is not difficult I here you say. Almost every store has Asian or Chinese noodles for sale right? Wrong!

Many of the Chinese noodles mass marketed in stores today are in fact wheat-based noodles. Check the list of ingredients used. Wheat or flour will often be listed. These noodles are often locally produced, and marketed as Chinese, instant or two minute noodles. These often contain up to 30g of carbohydrates to a 70g serving so they are definitely not low carb noodles. Zero carb noodels are mande from the amororphophollus konjac plantroots.

Low card Asian noodles are marketed as Shiratake or Tofu Shirataki noodles. They are available in most health stores or Asian markets. Alternatively there are many online suppliers that will ship these for you.

When do you buy these noodles?

Asian noodles are consumed in vast quantities, as it is one of the food staples of the Asian diet. So no matter where you purchase them they should still be relatively fresh. Even though they have a shelf life of up to a year if stored at room temperature, it is best to purchase them on an as required basis. They are available throughout the year.

They smell funny...

It is normal to be put off by the slight fishy odour of the water the noodles are packaged in. This is why rinsing them first in cold and then hot water is advised before use.

They feel funny...

Shirataki noodles are slightly rubbery in texture; this is due to the gel like substance they are made of. Tofu Shirataki noodles are higher in protein and have a more pasta like texture, however they can become very "chewy" when overcooked

But aren't they off?

Both wet variants of Shirataki and tofu Shiratake noodles are packaged in a fluid. It is the best way to naturally preserve them. This fluid however should be clear. If at any stage this fluid becomes cloudy the noodles should be considered as spoilt, and should not eaten.

So if they are not made of wheat, what are they made of?

Low carb Asian noodles are made using the potato or yam like roots of a plant known as the Devils tongue or Kojac.

This plant grows from fibrous tubers that are harvested and dried before use. It is used in Asian diets much as one would use potatoes in the western diet.

These roots unlike potatoes is low in carbohydrates and high A natural water-soluble dietary fibre known as Glucomannan. The root of the Kojac plant contains roughly 65% Glucomannan when dried of this 40% is gum. And it is this fibre that renders the noodles a miracle low carb food source.It is also the fibre that has seen low carb noodles listed as a low glycemic index food. Glucomannen is also marketed as a diet supplement.

When buying your low carb Asian noodles be sure to check the list of ingredients. If wheat or flour is listed you are not dealing with the bona fide low carb noodles.

Famous Noodles of Kyoto: Mamezen Soba

The ancient Japanese city of Kyoto is rich in every aspect of culture, from temples and shrines, the ancient tea houses and beautiful maiko, to the flavor of noodles unique to the capital of old Japan.

The Mamezen Soba is no exception. Served as an "omakase set" (chefs choice), the ramen comes in a unique soymilk broth and a yuba donburi rice bowl to accompany.

Mamezen was created by a young Japanese chef named Yonegawa Minoru. His family owns a simmered tofu hotpot restaurant called "Toka". The Tofu is made also a soymilk broth, leading to it's distinctively "Kyoto" luxurious taste and texture. Having worked there for many years, Minoru noticed that the locals rarely came to eat Tofu, even if the broth was something special. Of course, people would come from afar for this unique taste, but not the locals! Why? He wanted to serve the locals food that was in keeping with his roots, so he decided to open a ramen shop - classic Kyoto - and try to create a delicious ramen cooking in soymilk.

The fact is that ramen broth is generally very bad for you - extremely high in both fat and salt content. Children and the elderly are particularly told not to drink the soup when they've finished the ramen. The Mamezen soup is therefore unqiue in that it is made with a gently Kyoto dashi broth and healthy, rich soymilk. You can drink as much as you like, even when pregnant!

So, how does it taste?

Truth be told, it's a bit of an acquired taste and probably isn't for everyone. The soup is pungent with the smell of Kyoto fish-based dashi, yet silk smooth from the soymilk. You have have it even stronger by asking for "koime". The noodles that Chef Yonegawa uses are much thinner than regular ramen noodles (chuka soba), and personally I like mine to have a bit more meat on them. The delicate noodles are particular in fitting with Kyoto culture, though.

Check out the Mamezen Noodle shop next time you are in Kyoto for a unique taste sensation. Call ahead first though, as the shop is often closed.

The Strategy of the Grocery Store

Plum market is considered as a best fruit and vegetable market store in its location. It gives them a feeling of eating local food. This grocery store is known to supply the food items to local centers like local public and private schools, colleges, friendship circle, Birmingham Bloomfield Art Center, Karmanos cancer center, Cranbook house, Chidren's charity house called variety, Urban farming, American business women's association, Wild swan theatre, Birmingham community house and many more local institutes and organizations.

The delicious food that are available as local food to the various institutions, schools and organizations are not only nutritious but also with low calorie. The food item called Almond cheese sauce is a vegetarian, delicious and dairy free item which can be had for lunch served along with cauliflower, potatoes, and grains. Another exciting food item that can be liked by people of any age is Apple oatmeal. Apple oatmeal will be very delicious as well as nutritious with limited calorie content. The ingredients include cinnamon, oatmeal, soymilk, dates, Apple and almonds. Cinnamon and oatmeal aid in losing excess fats in our body while almonds and dates enhance the lean mass of the body. Soymilk provides the protein richness to this food item and Apple adds vitamins and minerals to it.

Apple Limeade is yet another dairy free, low fat and low sodium vegetarian food. The nutritious dressing on the vegetarian food available here is Basil pignoli dressing. The pignoli seeds are of pine nuts. This dressing is so tasty and appears good. It comprises of pine nuts, clove garlic mixture, fresh basil leaves, brown rice vinegar, and honey. The sprouts in the morning or noodles can be served along with the basil pignoli topping. The Wine varieties include wines of Northern Italy, wine tour of Southern France, wines of Australia, Europvin import varieties and so on.

The plum market is keen in providing fresh produce which is local food as well as organic food. The non-vegetarian food items are characteristic of having natural hormone and meat free of antibiotic. The Seafood and wines that is available in this grocery store are best selections that are liked by major number of customers. The local motto of this store is to encourage the internal personnel here from Michigan. The store, its employees and their whole families, and their product making is in Michigan. Hence this store is proud to get exposed as local market. The grocery store is keen to supply its produce to the local community of Michigan.

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http://www.youtube.com/watch?v=4oWZ-GybtvA&hl=en