Senate Banking Committee Chairman Paul Sarbanes, D-MD, is urging the Office of Thrift Supervision to revise its interpretation of a mortgage-related federal law that restricts state rights to enforce prepayment penalties on non-traditional mortgage loans. Committee and OTS staff have been discussing the possibility of amending the Alternative Mortgage Transaction Parity Act, which gives preemption protection to state-chartered financial institutions that opt to originate non-traditional mortgage products.