What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a state law in Tennessee that gives lenders certain rights to offer alternative and adjustable-rate mortgages (ARMs). It protects consumers by ensuring that lenders cannot unfairly take advantage of borrowers with different types of mortgages. The law requires a uniformity of treatment for all mortgage transactions and products so that borrowers do not receive different or discriminatory rates or terms. The AMTPA requires lenders to disclose all terms and conditions of a loan in a clear and concise form to the borrower. This means that borrowers must be informed of the type of mortgage, any fees associated with the mortgage, and the payment schedule before they sign the agreement. The lender must also explain any changes to the terms or any other changes that will affect the borrower before the loan is finalized. The AMTPA also provides consumers with several rights. Borrowers are entitled to a three-day right of rescission. This means that after signing a loan, the borrower has the right to rescind the loan agreement within 3 days without penalty. Additionally, the lender must provide contact information for any loan counseling services located in Tennessee. In short, the Alternative Mortgage Transaction Parity Act in Tennessee is designed to protect consumers from unfair practices by lenders and ensure that they are knowledgeable about all the terms of their mortgages. By providing uniformity and disclosure of all terms and conditions of a loan, consumers can make more educated decisions when it comes to mortgage products.

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What is the Alternative Mortgage Transaction Parity Act?

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