Adjustable-Rate Loan Accuracy Disputed: Consumers with adjustable-rate...
From Times Staff and Wire Reports
Adjustable-Rate Loan Accuracy Disputed: Consumers with adjustable-rate mortgages at savings and loans may have paid $8 billion too much due to mistakes in calculating interest rates, a former regulator told Congress. John M. Geddes said he was fired from the Federal Savings & Loan Insurance Corp. after he wouldn’t promise to keep the controversy secret. Geddes said he studied a sample of loans from Oklahoma, Texas, Michigan, Illinois, Indiana, Kentucky, Georgia, Iowa, Ohio, Tennessee and Florida, and found a 30% error rate. He consulted federal regulators around the country and calculated the overcharges might reach $8 billion.
