That's not what you did. You didn't pay a Flat Broker fee. You locked the rate you wanted then backdoored your broker later on YSP. The rate structure could easily be changed after a Borrower locks, so you also could have asked for the rate from the date your locked that had 0 YSP (which the rate would have been lower thus lowering your rate and caps) and just paid the Broker Fee of .50%.
Instead you wanted the money for closing costs, so you still have not made an argument against eliminating YSP as your earlier posts have stated.
Bob, this isn't worth getting your knickers in a twist over. We both know that in all likelihood he stated on his application that this would be a second home to avoid the upcharge for investment property purchases.
Cheers!
I arrived late to this party and after reading the entire thread last week, was prepared to write a long essay regarding all of Little Fish's statements but decided not to post it.
Bob makes a great point regarding the YSP and Little Fish's assertion that it's HIS money. YSP is a commission paid by the lender directly to the broker. The lender will never pay YSP directly to a buyer - only the broker can agree to pay costs on the settlement sheet that in effect would amount to using YSP to do it. BUT, if a borrower pays the loan off early (time varies by lender), the lender may ask the broker to return the YSP. It certainly wouldn't be the borrower being asked to pay it back.
I did a little quick research on Jumbo 7/1 interest only investment property rates (5/2/5) on the date Little Fish said he locked (Nov 26) and of the several wholesale lenders I looked at, NONE had anything close to that 6.125 rate paying 1.0 YSP, or even 0.5. Par rates (meaning little or no YSP) on that loan product for investment property ranged from 7.0-7.5%. I must say that I did not have access to Chase's rates but from experience, and in my opinion there is no way that Chase offered a rate on the same product/property type (investment) that was close to a full point lower than these other lenders par rates AND paid 1.0 YSP - repeat - NO WAY. If Little Fish's broker got that rate for him, the broker deserved 1.0 YSP.