Erie County Legislator Jim Malczewski is lambasting a measure by the federal government that will make responsible borrowers with good credit pay more for their mortgages to help out high risk borrowers. The Loan-Level Price Adjustment Matrix will actually punish people who make their mortgage payments on time.
“It’s unbelievable. To think that people work hard and do what the government and banks expect them to do-pay their mortgage on time-will now be told by the feds that they’re going to have to pay for their responsible behavior. That is absolutely absurd and insulting,” said Legislator Malczewski.
In order for the Federal Housing Finance Agency to bring down Loan Level Price Adjustments for high risk borrowers, those with higher credit scores will be charged more to make up the difference. A resolution introduced by the 10th District Legislator opposing the plan was passed by the Legislature at the April 27 session.
“I believe in the American dream; of owning a home, giving our kids opportunity. But I don’t believe that responsible homeowners should have to subsidize those that either don’t pay their bills or have debt. Why would the federal government want to punish the hard working and responsible taxpayers? If the feds really want to help people get into homes, they should be looking at ways to cut taxes and control inflation,” said Legislator Malczewski.
The resolution calls on federal lawmakers to reverse the change in the Loan-Level Price Adjustment Matrix and support policies that promote fair and just lending practices. The new rule is set to take effect May 1, 2023.
