A group of 18 Republican governors– including South Dakota’s Kristi Noem– have 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.
The governors wrote, “In short, the new LLPA framework will inevitably increase mortgage costs for lower-risk individuals and handicap those borrowers with larger down payments. 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 group says 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.
Republican governors issuing the statement are:
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, South Dakota Governor Kristi Noem, Tennessee Governor Bill Lee, Texas Governor Greg Abbott, Utah Governor Spencer Cox, and Wyoming Governor Mark Gordon.
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