Can we send a corrected application disclosure with a lower rate post-application for applications received at a branch, then forwards the application to our loan operations for processing. Customer does currently receive an application disclosure at the time the application is submitted.

Why? Unless you are charging fees up front, what difference does it make?

While it makes no difference from a disclosure perspective; I see nothing wrong with notifying the applicant that you plan to offer them a lower rate.

If the reason for the lower rate was because the branch is using the wrong disclosures, this needs to be addressed. If you are offering some a lower rate and not others without benefit of underwriting, then you may have to defend a Fair Lending issue.

applications received at a branch, then forwards the application to our loan operations for processing. Customer does currently receive an application disclosure at the time the application is submitted.

The way this is written leads me to believe your procedures are not compliant with providing the disclosures. The regulation requires you to provide the disclosure at the time you provide the application to the consumer, not when they submit an application. 1026.40(b).