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Re-disclosing Locked Rate Based on Prime

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Question: 
The initial and locked Loan Estimate (LE) on an ARM loan was based off the WSJP index. When it was time to issue the initial Closing Disclosure (CD), the WSJP index had increased causing the APR on the CD to be about 1/2% higher than on the last LE. Should we adjust the index value on the CD to match the index value used on the LE to keep the APR within tolerance, or do we need to update the index value to the current value and redisclose the LE and then inssue an initial CD?
Answer: 

Read the following, as we do not have enough information.

Official Interpretation
17(c) Basis of Disclosures and Use of Estimates
Paragraph 17(c)(1)
Comment 10

First published on 12/31/2023

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