We have a customer who wanted to lock the rate so that is what we disclosed on the LE. Now he wants to unlock the rate and keep it floating. Do we need to reissue the LE?

I should add that the initial LE was issued as locked based on the loan officer's discussion with the customer. We do not have a signed rate lock agreement.

Without a written rate lock agreement, a rate is never locked.

I agree; however, the LE was issued as locked based on the customer's verbal request. So do we need to provide an accurate LE now to show it's not locked?

It is going to be a business decision, there is no guidance as to how to correct. You can't actually cure the original violation. But sending a corrected informational LE to make sure the consumer knows the rate is not locked might not be a bad idea.