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Home » Store » News » AMTPA Preempts Virginia Prepayment Laws Court Rules

AMTPA Preempts Virginia Prepayment Laws Court Rules

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For the second time, Virginia banking regulators lost their bid to restrict prepayment penalties on so-called alternative mortgages originated by state-chartered lenders under federal lending rules. In a Feb. 7 decision, a federal appeals court upheld a lower court ruling that a 1982 federal parity law preempts state law to the extent that it authorizes state-chartered lenders to engage in alternative mortgage transactions so long as they comply with that federal law.
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