Gov. Noem and Colleagues Oppose Changes to the Loan Level Pricing Adjustment
PIERRE, S.D. – Today, Governor Kristi Noem and 17 of her fellow Republican governors sent a letter to President Biden and Federal Housing Finance Agency Director Sandra Thompson opposing the mandated changes to the loan level pricing adjustment (LLPA). You can read the letter here.
“In short, the new LLPA framework will inevitably increase mortgage costs for lower-risk individuals and handicap those borrowers with larger down payments,” wrote Governor Noem and her colleagues. “Further, the changes provide no incentive to borrowers to maintain good credit and will confuse borrowers at all credit levels. Disincentivizing good credit behavior and penalizing responsible Americans during an inflation crisis – which required the Federal Reserve to increase interest rates 10 consecutive times in a year – is wrong and unresponsible.”
The new LLPA framework threatens the American housing system and upends the current financial model that relies on individual responsibility. This will only increase the uncertainty in the housing market and in the United States economy.
“As governors, we promote hard work, accountability, fairness, and opportunity for all our citizens.” continued Governor Noem and her colleagues. “The LLPA mandates blatantly contradict these goals. Therefore, we request you rescind the updated LLPA immediately. If you are unwilling to do so, Congress must take action.”
Governor Noem was joined by the following Republican governors in issuing the statement:
Georgia Governor Brian Kemp and Missouri Governor Mike Parson, Alabama Governor Kay Ivey, Arkansas Governor Sarah Sanders, Idaho Governor Brad Little, Indiana Governor Eric Holcomb, Iowa Governor Kim Reynolds, Mississippi Governor Tate Reeves, Montana Governor Greg Gianforte, Nebraska Governor Jim Pillen, Nevada Governor Joe Lombardo, New Hampshire Governor Chris Sununu, Ohio Governor Mike DeWine, Tennessee Governor Bill Lee, Texas Governor Greg Abbott, Utah Governor Spencer Cox, and Wyoming Governor Mark Gordon.