You can change it to be more severe if you want to delve into the code.
Around line 4040 in spells.cpp you'll find
Code:
int level_mod = temp_level_diff * temp_level_diff / 2;
if(temp_level_diff < 0)
{
level_mod = -level_mod;
}
if(IsNPC() && (caster->GetLevel() - GetLevel()) < -20)
{
level_mod = 1000;
};
Which deals with the level mod. You can also change the -20 to make it a faster cutoff.