Sorry, but only the statement about the Yield Spread is true.
Points on the front would be the origination fee. Pre-paid interest is the interest charged from the day your loan funds through the end of the month.
When you make a mortgage payment, you are paying interest in arrears: i.e., May’s payment covers April’s interest, etc. The month you close you will not have a payment, and therefore the interest for the remaining days of that month is covered in an up-front payment collected on the settlement statement…the pre-paid interest.
The other points on the front referred to are discount points…monies paid to buy down the rate. That money is not interest.
And no, a broker cannot charge anything you allow. There are federal regulations (under RESPA, the Real Estate Settlement Procedures Act) limiting the amount of points that can be charged.