Correcting ARM Loan Adjustments

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Question:

We recently discovered that we have a few ARM loans that were set up on our system incorrectly. The payment was not set to change when the rate changed. As a result, we have basically extended the amortization on these loans by not increasing the payment along with the corresponding rate increase. How would you suggest we rectify this error?

Answer:

Bank's legal counsel. It sounds like the bank is possibly in breach of its contract with the borrower.