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par plus pricing arrangements

Spanish translation: precios/tasas estipuladas por encima del valor nominal (del crédito)

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:par plus pricing arrangements
Spanish translation:precios/tasas estipuladas por encima del valor nominal (del crédito)
Entered by: Margarita Palatnik
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18:15 Jun 23, 2005
English to Spanish translations [PRO]
Bus/Financial - Finance (general)
English term or phrase: par plus pricing arrangements
XXX may receive payment directly from the lender/investor in the form of a yield spread premium or par plus pricing arrangements. The yield-spread premium may fall within the range of 0% or 5% of the loan amount.

Muchas gracias,
Poly
Paola Nobizelli
Chile
Local time: 09:43
precios/tasas estipuladas por encima del valor nominal (del crédito)
Explanation:
Inflated Home Mortgage Costs: Yield-Spread Premium Information - Some mortgage lenders offer brokers a referral fee if the broker gets the consumer to accept a higher interest rate over the life of the mortgage. At closing, these kickbacks would be listed as "yield spread premiums," "service release premiums," "yield differentials," "rate participation fees," "service release fees" or "par-plus pricing."
This practice causes several problems for the consumer. One problem is that the mortgage broker has no incentive to find the best deal for his or her client. Instead, the broker can look for the mortgage lender that offers the best referral fee. Another problem is the impact the higher interest rate has on the mortgage payments over the life of the loan. The consumer will pay thousands of extra dollars in the end simply because of a small increase in the interest rate. Finally, since the fees are not explicitly described in the mortgage documents, the consumer has no way of knowing that the broker was not representing his or her best interests.
Selected response from:

Margarita Palatnik
Local time: 09:43
Grading comment
Muchas gracias
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +2precios/tasas estipuladas por encima del valor nominal (del crédito)Margarita Palatnik


  

Answers


5 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +2
precios/tasas estipuladas por encima del valor nominal (del crédito)


Explanation:
Inflated Home Mortgage Costs: Yield-Spread Premium Information - Some mortgage lenders offer brokers a referral fee if the broker gets the consumer to accept a higher interest rate over the life of the mortgage. At closing, these kickbacks would be listed as "yield spread premiums," "service release premiums," "yield differentials," "rate participation fees," "service release fees" or "par-plus pricing."
This practice causes several problems for the consumer. One problem is that the mortgage broker has no incentive to find the best deal for his or her client. Instead, the broker can look for the mortgage lender that offers the best referral fee. Another problem is the impact the higher interest rate has on the mortgage payments over the life of the loan. The consumer will pay thousands of extra dollars in the end simply because of a small increase in the interest rate. Finally, since the fees are not explicitly described in the mortgage documents, the consumer has no way of knowing that the broker was not representing his or her best interests.


Margarita Palatnik
Local time: 09:43
Specializes in field
Native speaker of: Native in SpanishSpanish
PRO pts in category: 965
Grading comment
Muchas gracias

Peer comments on this answer (and responses from the answerer)
agree  Marina Soldati
1 hr
  -> Gracias de nuevo, Marina

agree  Malena Garcia
19 hrs
  -> Gracias nuevamente, Malega
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