Alternative Mortgage Transaction Parity Act of 1982 (AMTPA)

Definition

A federal statute authorizing nonfederally chartered housing creditors to engage in alternative mortgage financing, such as reverse mortgages and adjustable-rate mortgages (ARMs), regardless of any state bans then in effect. The nonfederally chartered lenders must comply with all applicable federal and state regulations, including state regulations imposing consumer-protection standards that exceed federal standards. AMTPA is often cited as a partial cause of the 2007 sub-prime mortgage crisis by allowing greater access to more complex, potentially confusing mortgages.