What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a federal law that was passed in 1982 in the U.S. state of Washington. This law was designed to promote access and competition in the mortgage market by allowing lenders to offer financing products that were not strictly regulated by the banking laws. Specifically, the AMTPA grants lenders the same rights and privileges as exist for banks to make loans and provide services of a similar nature. For example, the AMTPA allows mortgage lenders the ability to enter into alternative mortgage transactions, such as adjustable-rate mortgages and balloon-payment mortgages. This means that lenders can provide more flexible and creative loan terms to borrowers, depending on the individual’s specific financial situation. The AMTPA is important because it helps to place equity in the hands of lenders and borrowers. This means that home buyers may be able to get into a home, even if they do not have perfect credit or the required down payment. It also allows lenders to take a responsible risk by offering a mortgage to those who do not fit the standard criteria for a traditional loan. Overall, the AMTPA is an important law that helps to promote access to the mortgage market, thereby giving more people the ability to own a home.

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What is the Alternative Mortgage Transaction Parity Act?

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