First Funding Blog

YSP and SRP are the same thing, right?

Yield Spread Premium (YSP) is different than Service Release Premium (SRP). YSP is known and payable at closing. SRP can be estimated by the originator at the time a loan is closed, but the actual SRP amount and its collectability is not known unless and until the loan is sold into the secondary market AND the servicing rights are sold by the mortgage originator (if ever).