Investopedia

Continue to Site »

Alternative Mortgage Transaction Parity Act - AMTPA

Filed Under » , , ,
Dictionary Says

Definition of 'Alternative Mortgage Transaction Parity Act - AMTPA'

An act from 1982 that over-rode many state laws that prevented banks from using mortgages other than conventional fixed-rate mortgages. This act allowed for the total costs of loans to become obscured, and led to the availability of various new mortgages such as adjustable rate mortgages (ARMs), interest only mortgages, and ballon payment mortgages.
Investopedia Says

Investopedia explains 'Alternative Mortgage Transaction Parity Act - AMTPA'

Many believe that this act is the basis of the sub-prime crisis of 2007, which led to the financial crisis of 2007-2009. Many mortgage borrowers in the early 21st century obtained mortgages that they failed to understand. As borrowers began to lose their homes due to defaulting on their mortgages, house prices began to spiral downward making it even more difficult for people to refinance their homes into more affordable mortgages.

Articles Of Interest

  1.

    Interest-Only Mortgages: Home Free Or Homeless?

    These loans can be beneficial, but for many borrowers, they present a financial trap.

  2. ARMed And Dangerous

    In a climate of rising interest rates, having an adjustable-rate mortgage can be risky.

  3. Option ARMs: American Dream Or Mortgage Nightmare?

    Option adjustable rate mortgages could make or break your home-buying experience.

  4. Who Is To Blame For The Subprime Crisis?

    From lenders to buyers to hedge funds, it appears everyone has blood on their hands.

  5. This ARM Has Teeth

    Find out how to avoid getting bitten when your mortgage rate resets.

  6. 6 Tips For Selling Your Home Fast

    Find out what you can do to stand out from the competition and make your home an easy sell.

  7. Lessons Learned From the Banking Crisis

    There are lessons to be learned on how to handle severe financial downturns, and while the Fed is learning, politicians may not be.

  8. 5 Smart Ways To Use Your Tax Return

    This year, find out how to stretch your tax refund further to strengthen your future.

  9. Other Options For The Cyprus Bailout

    Find out the other options Cyprus could use to resolve it's financial troubles, since its proposal to tax bank deposits didn't work out.

  10. The Cyprus Crisis 101

    Discover what's behind the Cyprus debacle and what investors should do about the situation.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center