1.   And even when a specific reference to a yield spread premium is noted on the closing statement, the reference is still unlikely to be understood by many borrowers.

2.   Eric Gonchar, a Manhattan real estate lawyer, said that in his experience, most deals involving brokers also involve yield spread premiums.

3.   In fact, brokers have a financial incentive not to get the best possible deal for borrowers, because of a practice called yield spread premium pricing.

4.   Last year, for example, a federal district judge in Virginia found against the practice of yield spread premiums.

5.   Most borrowers, he said, simply go through with the deal without fully realizing the impact a yield spread premium may have had on their interest rate.

6.   The ruling, now being appealed, is the first to question the legality of yield spread premiums.