CFPB Discusses AMTPA Amendments

This story appeared in Bank Digest.

The CFPB has issued a bulletin noting that, on July 21, 2011, amendments to the Alternative Mortgage Transaction Parity Act take effect pursuant to Sec. 1083 of the Dodd-Frank Act. The amendments affect what laws will apply to mortgage loans issued by state chartered or licensed lenders. The Dodd-Frank Act amended AMTPA's definition of “alternative mortgage transaction.” As of July 21, 2011, AMTPA will no longer operate to preempt certain general state restrictions on mortgage transactions, including restrictions on prepayment penalties or late charges. Also, as of the effective date, the authority for issuing regulations to implement AMTPA will transfer from the Office of the Comptroller of the Currency, National Credit Union Administration and Office of Thrift Supervision to the CFPB.