On the new Loan Estimate, in the Header by rate lock if the box Yes is checked that the rate is locked ” before closing your interest rate point and lender credits can change unless you lock the interest rate. All other estimated closing costs expire on 3/4/2013 at 5:00p.m. EDT”
According to this statement above, it implies that once the borrower has locked in their interest rate, then there can be no change in rate, points or lender credits. What happens in the event that there is a change in critical loan data (i.e. the appraisal comes in low resulting in an increased LTV which then affects the Loan Level Price Adjustments charge by FNMA/FHLMC) and the pricing on the loan is affected? Can those pricing changes be passed on to the borrower either by increasing the interest rate, charging points or decreasing any Lender Credit?