Some of our lenders have been a little confused about GFEs and secondary market loans. Because the rates on these loans change daily, they believe that when a rate is finally locked that a new GFE would need to be issued to the customer.

I'll give a current example of a GFE:
The GFE currently states: 4/25/13 as the date of GFE
Item #1 of the important dates says "08:30AM, April 26, 2013.
Item #2 says "08:30AM, May 7, 2013 (10 day period)
Item #3 says "20" days
and item #4 says "n/a".

Are we required to redisclose and issue a new GFE if the rate that gets locked (after April 26th)is greater than the rate initially disclosured?

Any time a consumer exercises a rate lock, relock or lock extension option you are required to issue a revised GFE. This is the only time that you are mandated by the regulation to issue a revised GFE. Reveiw 1024.7(f)(5).

So this means that the lenders would then have to wait another 10 days after re-issue before they can close the loan?

No, they could (unless it throws your APR out of tolerance) present the new GFE at closing, if they wanted to.

Your original 10 days (for intent to proceed) never changes based on re-issues for COCs, including rate locks. Also, even upon original issue, you don't have to wait 10 days...you have the seven required by Reg Z.