Wanna get back at those greedy, Wall Street guys? That seems to be the populist message in the Financial Reform Act. Hidden in the legislation, is a host of regulations that reduce those bankers' competition, by regulating non-bank financial institutions (and leaving bankers exempt), and increasing closing costs to home buyers through the elimination of yield spread premium (YSP).
Yield Spread Premium is a way for home buyers to reducee closing costs, through acceptance of a higher note rate on their mortgage.
Florida mortgage originator Dan Poulos gives us a righteous, ranting lesson on how this bill will hurt California home buyers: