U.S. Senate Addressed YSPs

The handling of YSPs under RESPA Reform have created quite a storm of controversy.  Nearly everyone understands the rule to say that any YSP amounts are to be credited to the borrower on line 802 of the HUD-1.  Many settlement agents took that to mean they would no longer be funding items described as YSP to a mortgage broker.  Yet often a lender's closing instructions will direct a settlement agent to pay certain compensation to the mortgage broker including an amount for YSP, leaving questions surrounding whether YSP as broker compensation is truly a thing of the past.  I thought you would be interested to see what the U.S. Senate thinks about YSPs as broker compensation as well as no doc loans as this article from the LA Times reports.