What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a law in Oklahoma which regulates non-traditional mortgage loans. This act grants banks, credit unions, and other lenders the right to make and offer non-traditional mortgage loans such as adjustable rate mortgages, interest only loans, and balloon payment loans. This legislation was passed in 1995 to create more loan options and protect the consumer. The Alternative Mortgage Transaction Parity Act protects the borrower in many ways. For example, it requires lenders to provide full disclosure of the details of the loan including an explanation of the fees and interest rates. It also requires that lenders provide a period of counseling to the borrower to ensure they understand the terms of the loan. The act also created a cooling off period which allowed the borrower to cancel the loan within 3 days of signing. Overall, the Alternative Mortgage Transaction Parity Act has created more loan options for borrowers and provides extra protection for consumers. The act creates a fair and transparent lending market and allows borrowers to access the loan options which are best suited to their needs. It has also allowed lenders to provide more innovative products to the market, thus creating a more competitive market.

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What is the Alternative Mortgage Transaction Parity Act?

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