What is the Alternative Mortgage Transaction Parity Act?

The Alternative Mortgage Transaction Parity Act (AMTPA) is a law in Washington that helps protect homebuyers and encourage lenders to offer innovative mortgage products by allowing them to offer different types of mortgages in addition to traditional fixed-rate mortgages. Specifically, the law allows lenders to offer adjustable rate mortgages (ARMs), interest-only mortgages, reverse mortgages, and other types of nontraditional mortgage products. The law also prevents states from prohibiting or interfering with such alternative mortgage products. The AMTPA was passed in 1982 in order to make it easier for homebuyers to get mortgages, as it allowed lenders to offer more options than traditional fixed-rate mortgages which had higher interest rates. The law also reduced the cost of borrowing, as lenders could offer more competitive rates on nontraditional mortgages. Additionally, the law granted lenders some protection by limiting the amount of liability they could face if they made mistakes. Overall, the Alternative Mortgage Transaction Parity Act is an important law that helps protect homebuyers while also encouraging lenders to offer more innovative mortgage products. The law benefits everyone involved by allowing borrowers to shop around for better rates, while also providing lenders with some protection.

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What is the Alternative Mortgage Transaction Parity Act?

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