California DOC Says YSPs NOT Included In Points and Fees Test

This is not legal advice for your situation*

In a recently published release, the California Department of Corporations has concluded that under current law (specifically the decision in Wolski v. Fremont Investment & Loan (2004) 127 Cal. App. 4th 347), yield spread premiums are not part of points and fees under California's Covered Loan Law. We believe this is the first written statement by a California governmental agency regarding whether or not yield spread premiums are included as points and fees under California's Covered Loan Law.

To view a copy of the release, click here.

*This article is distributed to provide general information about the subject matter covered and should not be utilized as a substitute for professional advice in specific situations. If you require such advice, please consult with your own professional advisers.