A yield spread premium is disclosed on which document?

A yield spread premium is typically disclosed on the Good Faith Estimate (GFE). This document is provided to borrowers at the beginning of the mortgage process and outlines the terms of the loan, including the costs associated with obtaining the loan. The GFE is designed to help borrowers understand the true cost of their mortgage, allowing for easier comparison between different lenders and loan options.

The yield spread premium represents money that the lender pays to the broker for offering a higher interest rate than what the borrower may qualify for. This premium is an important component of the overall loan costs and impacts the borrower's long-term financial commitment. By detailing this on the GFE, borrowers can make informed decisions about whether the trade-off of a higher interest rate for potential upfront costs is beneficial for their financial situation.

While the other documents listed might include important information related to the loan process, they do not specifically address the yield spread premium in the same explicit manner as the Good Faith Estimate does. Therefore, this disclosure is critical for transparency in the lending process and helps ensure that borrowers are fully informed regarding their choices and possible financial implications.