What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a Kansas banking law passed in 1982 that gives lenders the ability to offer alternative mortgage transactions to customers. This law replaced the federal Truth in Lending Act and allowed for more flexible terms for mortgages that wouldn’t otherwise be available. Essentially, AMTPA gives lenders the right to offer alternative mortgage products, such as adjustable rate mortgages (ARMs), balloon mortgages, buydowns, home equity lines of credit, and other similar options. While it does provide lenders with more options to provide customers with, it also requires lenders to disclose the terms and conditions of the mortgage to the borrower in order for them to make an informed decision. The AMTPA also requires lenders to inform customers of certain fees or penalties related to the loan, as well as how the interest rate will adjust over time. These regulations are in place to ensure that the customer understands the risks associated with the loan before they sign on the dotted line. In conclusion, the Alternative Mortgage Transaction Parity Act is a banking law that gives lenders the ability to offer alternative mortgage products, providing more options to customers. While it helps consumers, the law also includes regulations that require lenders to clearly disclose the terms of the loan and any associated fees and penalties so that customers can make an informed decision.

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What is the Alternative Mortgage Transaction Parity Act?

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