What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA), passed at the federal level in 1982, allows banks and other lenders in North Carolina to offer different types of mortgages that may be more advantageous to consumers in the state. This legislation applies specifically to alternative mortgages, which are not traditionally offered by banks, such as interest-only loans, adjustable-rate mortgages, and mortgages that don’t require a down payment. The AMTPA ensures that alternative mortgages are treated the same as traditional mortgage offerings, meaning that lenders must offer the same rates and terms on alternative mortgages as they do for traditional mortgages. The AMTPA also prohibits lenders from charging unreasonable fees for alternative mortgages. Consumer protection is a key goal of the AMTPA, as the legislation provides additional transparency and oversight when it comes to alternative mortgages. Consumers in North Carolina are now able to understand the details of a loan before signing any documents, and any fees assessed must be clearly disclosed. This transparency is beneficial for borrowers, as they can make informed decisions about the type of mortgage that best suits their needs. Overall, the AMTPA has had a positive effect on the banking industry in North Carolina. It gives consumers additional options beyond those typically provided by banks and provides more protections to consumers when it comes to obtaining alternative mortgages.

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What is the Alternative Mortgage Transaction Parity Act?

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