The overage is when a par price is established for the loan by the bank and the loan office can price the loan higher by up to 1.5% (in this case) and then get to split the profits with the bank. Typically, the danger is that loan officers will price loans higher for less sophisticated borrowers which may fall into a protected class when their credit is the same as a more sophisticated borrower that then receives a lower price. It makes for nasty side-by-side comparisons.
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