Alternative Mortgage Instruments Act of 1979

Alternative Mortgage Instruments Act of 1979 - Amends the Home Owner's Loan Act of 1933 to permit federally chartered savings and loan associations to invest and deal in graduated payment mortgages on the security of first liens and reverse annuity mortgages. Permits until December 31, 1982, and federally chartered association with its home office in California to deal in first liens in the form of variable rate mortgages upon real property located in California, provided such mortgages account for no more than 50 percent of the dollar amount of first liens held by such an association.

Requires every association to offer a standard mortgage to all applicants for such alternative mortgage instruments. Describes the terms which are permitted in such alternative instruments and sets forth disclosures which must be made to all applicants.

Directs the Federal Home Loan Bank Board to transmit an annual report to the President and the Congress concerning the programs established by this Act.

Establishes a Commission on Alternative Mortgage Instruments to study: (1) the effects of alternative mortgage instruments on inflation and interest rates; (2) the types of disclosure statements necessary to assist an applicant in deciding whether to accept an alternative mortgage instrument; and (3) the experience of borrowers in using such alternative instruments. Directs the Commission to submit a report to the President and the Congress by December 31, 1981, stating its findings and recommendations.