What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a South Carolina law that provides protection to homeowners and borrowers by restricting certain types of mortgages. The law was passed in 1985 to supplement the Real Estate Settlement Procedures Act of 1980. It provides guidelines for lenders and borrowers about when alternative forms of mortgages can be used. The AMTPA generally prevents lenders from charging higher interest rates, fees, or points on alternative forms of mortgages than on conventional mortgages. The AMTPA also requires lenders to provide certain disclosures to borrowers when offering any type of mortgage product. For example, lenders must provide information on the total closing costs associated with the mortgage, the annual percentage rate, the loan amount, and the fees charged. The lender must also provide a comparison of the cost of the mortgage over time, such as the total cost of the loan over the life of the loan. The purpose of the AMTPA is to protect borrowers from unfair mortgage practices. By requiring certain disclosures and creating restrictions on alternative mortgage products, the law helps prevent borrowers from being taken advantage of when they enter into a mortgage transaction. This helps to create a level playing field between lenders and borrowers when it comes to mortgages, so that all parties can make informed decisions.

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What is the Alternative Mortgage Transaction Parity Act?

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