What is the Alternative Mortgage Transaction Parity Act?
The Alternative Mortgage Transaction Parity Act (AMTPA) is a federal law that was enacted in 1982. It is a state law that applies to Oklahoma and other states. The law provides for equal access to alternative mortgage products like adjustable rate mortgages (ARMs), interest-only loans, and other financing options. AMTPA is designed to promote consumer access to different financing choices while promoting competition among lenders. The AMTPA prohibits state legislatures from enacting laws that discriminate against specific types of mortgage financing. This means that states must allow banks or other mortgage lenders to offer consumer-friendly alternatives to traditional fixed-rate mortgage loans. It also requires states to allow consumers to choose between different types of mortgages, such as ARMs and other adjustable-rate products. The AMTPA also provides greater consumer protections to ensure that borrowers who opt for an alternative mortgage product are not taken advantage of by the lender. These protections include rules that require banks to provide borrowers with clear information on loan terms and fees, and to give consumers a reasonable amount of time to make loan payments. In Oklahoma, banks and other mortgage lenders must abide by the Alternative Mortgage Transaction Parity Act. Consumers can benefit from the law’s protections by understanding the terms of their loans and asking questions before they sign a contract.
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