Business Notes MORTGAGES

Shirley Wynn of Miami wrote to Coral Gables Federal Savings and Loan last July to tell the bank that it made a mistake in computing the interest due on her mortgage, overcharging her $1,464 in the course of three years. The bank apologized and refunded the overpayment. Wynn was one of the lucky ones. According to a congressional review and a study by a former federal auditor, John Geddes, thousands of others across the nation with adjustable-rate mortgages may have been overcharged. Basing his estimate on an examination of 7,000 loan accounts, Geddes says a third of the outstanding ARM loans have been miscalculated. Overpayments could total $8 billion.

The main problem seems to be errors by deficient computer programs and poorly trained employees. As many borrowers were charged too little as too much. Mortgage lenders say Geddes needs more data before drawing such sweeping conclusions. But his efforts have already brought change. Lenders are more carefully scrutinizing their procedures, federal examiners are auditing loan portfolios, and some consumers have filed class-action lawsuits.