View source for Alternative Mortgage Transaction Parity Act of 1982

The '''Alternative Mortgage Transaction Parity Act of 1982''', also known as '''AMTPA''', preempts state laws that restrict banks from making any mortgage except conventional [[fixed rate mortgage|fixed rate]] [[amortizing loan|amortizing mortgages]]. AMTPA was contained in title VIII of the [[Garn–St. Germain Depository Institutions Act]] passed in 1982

Mortgages allowed by the act included:
* [[Adjustable-rate mortgage]]s, in which the interest rate becomes floating after a number of years.
* [[Balloon payment mortgage]]s have a large payment remaining when the loan comes due.
* [[Interest-only loan|Interest-only mortgages]] only require the borrower to pay the interest on the principal balance for the first years of the loan.<ref name="Birger">John Birger, [https://money.cnn.com/2008/01/30/real_estate/congress_subprime.fortune/ How Congress helped create the subprime mess] {{webarchive|url=https://web.archive.org/web/20090425222614/https://money.cnn.com/2008/01/30/real_estate/congress_subprime.fortune/ |date=2009-04-25 }}, [[Fortune Magazine]], January 31, 2008.</ref>

The [[United States House of Representatives]] passed H.R.3915 "The Mortgage Reform and Anti-Predatory Lending Act of 2007" in November, 2007. It remains before the [[United States Senate]].<ref>{{Cite web |url=http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03915: |title=Thomas Locator on H.R.3915 |access-date=2008-10-29 |archive-date=2008-11-11 |archive-url=https://web.archive.org/web/20081111224804/http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03915: |url-status=dead }}</ref> The House bill would require lenders to write mortgages that take into account the borrowers' ability to pay at the fully indexed rate.<ref name="Birger"/>