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E-3-25, Acronyms and Glossary of Defined Terms: Y (05/30/2017)

yield

Return on an investment.

yield difference (or interest rate differential)

The difference between Fannie Mae’s required yield and the net note rate of an ARM. Fannie Mae limits the amount of this difference.

yield differential adjustment

An amount paid to the servicer of a whole first mortgage when the initial interest rate of a mortgage exceeds Fannie Mae’s required yield for the commitment under which the mortgage was purchased.

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