Here is our situation. We issued an LE and customer gave intent to proceed. After we got all the title work done and sent out the closing disclosure the customer decides that he needs additional money. What is the best way to handle this since we don't want to have a tolerance cure? Can we close this loan out and say customer didn't accept it and issue a new LE and start everything over? Or can we just issue a new CD and ignore the tolerance cure on items that have zero tolerance?

Read the CFPB proposal regarding using a CD to reset tolerances. While in proposal format, I can't imagine it is going to change.