A borrower applied for a 20 yr fixed rate mortgage to refinance and consolidate a 1st and 2nd mortgage. The appraisal came back too low to cover both, so we denied/countered with a lower amount to refinance just the 1st mortgage. The borrower accepted, and we redisclosed the GFE. Despite the loan amount decreasing, we increased our origination charge because our delivery fees went up due to the 2nd mortgage (3/4% to 1%). Is this okay since we countered and they accepted, or is it not okay since the product technically did not change (still a 20 yr Freddie)?
Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.