Re-Disclose LE at Higher IR? Changed Circumstance

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Question:

We locked a mortgage loan with an investor that denied the loan due to appraiser ineligibility with that particular investor. We would like to switch the loan to a different investor that will accept the appraisal. Rates have gone up since the initial lock with the initial investor. My question is, can we re-disclose the LE at the higher interest rate and consider this a changed circumstance due to the loan being denied with the initial investor and being re-locked with a new investor?? (instead of having to start a whole new application etc.)

Answer:

Locking with an investor has nothing to do with the consumer. Unless you have entered into a written rate lock agreement with the concumer, you can change the interest rate on the loan at any time.