If a borrower requests to lock in a rate with 1 point, however, LO locks the rate with zero points in error and provides GFE (without reviewing it), is the lender bound by the rate borrower initially requested or can lender provide a revised GFE with the correct rate and points (block 2)? In other words, is the bound by the rate lock requested but cannot charge the point?

If you are outside of your three day window, you are bound by the GFE that you issued. This is not a change in circumstance.

I agree, however, the GFE issued has a higher rate than the borrower requested: Borrower requested rate lock of 4.375% with 1 point; LO issues the GFE with rate of 4.625% with zero points. Can a corrected GFE with the requested by borrower be issued?

Not if you're outside the three day window.

Actually, I seem to remember somewhere a discussion about once you've issued the GFE you can't go back and change it even if you are inside the three day window. Dan? Randy? David? Anyone remember anything like this or is it just another bad dream?

I think there are two issues here. One, you can't change the fees on the GFE as you are outside of the 3 day window - regardless if you made an error on the rate disclosed (that just becomes a non-correctable violation). I believe that you are also going to have to honor the lower rate as that was the rate that the applicant locked and contractually you are bound by the lower rate.

Once you issue the revised GFE within the allotted time you cannot "revise the revision" absent another changed circumstance affecting the issued revised GFE.

As a number of us keep saying an employee's foul up due to them not paying attention is not a changed circumstance, other than maybe for their next performance review.

Thanks, Dan. That's what I thought I remembered but I couldn't find a supporting FAQ so I didn't want to state it as an absolute.

Thank you all.......So not only do we honor the lower (rate which we would have) but now we can't charge the point they were willing to pay!!!!!

On a different type of disclosure error--what happens if the lock isn't disclosed within your 3 day window of locking the rate, loan was floating? Are you saying that because we are outside of the 3 day window we don't disclose the lock information?