What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a federal law that was passed in 1982 and enforced in Virginia. This law gave increased protection and expanded options for consumers buying mortgage loans in the state. The law was created to make sure that state-chartered institutions, such as banks and credit unions, and federally chartered institutions, such as savings and loan associations, were providing their customers with the same options and protections when it came to obtaining mortgage loans. In other words, it aimed to create parity between state and federal institutions. The AMTPA also prohibited lenders from discriminating against certain types of applicants when making mortgage loans, such as those with disabilities or veterans. Furthermore, it gave lenders the ability to offer adjustable rate mortgages (ARMs) and option ARMs, which had previously been prohibited. The law allowed lenders to charge additional fees, such as origination fees and points, and also made it easier for lenders to index interest rates. Finally, it also gave borrowers the right to refinance their loans without penalty. In sum, the Alternative Mortgage Transaction Parity Act is a federal law that was passed in 1982 and is enforced in Virginia. It helps protect consumers by providing them with an equal playing field when it comes to obtaining mortgage loans, and also by prohibiting certain discriminatory practices. Additionally, the law allows lenders to offer adjustable rate mortgages (ARMs) and other loan types, as well as the ability to index interest rates. Finally, it also provides consumers with the right to refinance their loans without penalty.

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What is the Alternative Mortgage Transaction Parity Act?

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