[Comments on Adjustable Rate Mortgage Interest Rates]

GAO commented on the: (1) extent to which adjustable rate mortgages (ARM) were misadjusted as interest rates changed; and (2) consumer costs of such misadjustments. GAO noted that: (1) it could not reliably estimate the number or percentage of ARM with interest recalculation errors; (2) federal bank regulators were in the process of drafting examination procedures to determine the extent of ARM misadjustments; and (3) the Truth in Lending Act did not require financial institutions to reimburse overcharged borrowers.