Entering YSP credit and including it into the origination charges

1. Go to the Initial Fees Worksheet.
2. Scroll to the Credit for Specific Interest Rate Chosen section and then enter the YSP amount.
   
   
   
   
   
3. Go to line item 801: Loan origination Fee.
4. In the Compensation from Rebate dropdown list, select Include in Origination Charge, or click the lock box and manually enter the YSP amount that will be included into the origination charges.
   
   
   
   
   
5. Go to the Good Faith Estimate 2010.
6. Scroll to the Adjusted Origination Charges section.
7. For line item 2. Credit or charge (points) for the specific interest rate chosen, check the  Borrower receives a credit of... checkbox.

**NOTE: If the YSP that you have included into line 801: Compensation from Rebate is the same as the YSP entered into the Credit for Specific Interest Rate Chosen section; then the YSP is a wash and you should have followed the above steps.

However, If the YSP that you will include into the origination charges is less than the YSP amount in the Credit for Specific Interest Rate Chosen section; then you must enter the difference into the 1300 series section as a negative number.

Credit For Specific Interest Rate Chosen minus 801: Compensation from Rebate = negative amount to enter in 1300 series section. For Example: $4,070 - $1800 = $2270 (enter as a negative number)

Entering YSP credit without including it into the origination charges

1. Go to the Initial Fees Worksheet.
2. Scroll to the Credit for Specific Interest Rate Chosen section and then enter the YSP amount.
   
   
   
   
   
3. Scroll to the 1300: Additional Settlement Charges section.
4. Under the Pest Inspection, enter a description of Yield Spread Premium Credit.
5. Enter the YSP amount as a negative number. For example, -4070. This will apply the YSP as a credit for the cash at closing on the loan application.
   
   
   
   
   
6. Go to the Good Faith Estimate 2010.
7. Scroll to the Adjusted Origination Charges section.
8. For line item 2. Credit or charge (points) for the specific interest rate chosen, check the  Borrower receives a credit of... checkbox.

**NOTE: When you are not going to include the YSP into the Origination Charges; the compensation from rebate dropdown list in line 801 of the Initial Fees Worksheet, should be left blank.