I hope someone can settle a dispute we are having. The situation is a client applied for a construction loan on Jan. 5, 2020, signed the intent to proceed the next day on Jan 6 and brought it by the bank. We had everything we needed to do a loan estimate on Jan 5 so we did. We did not check the box for a rate lock. The next item is ….all other estimated closing cost expire on..... we dated Feb 5, 2020. Usually we put 30 days there. Last week the clients finally got all of their estimates in and are ready to close. (mostly due to the corona virus). We realized we did not disclose on the original loan estimate dated Jan 5 inspection fees that total approximately $1,200.00. Can we now do a re-disclosure of a loan estimate and include the inspection fee? I have gotten several different opinions.

Forgetting to put a fee on the initial LE does not constitute a valid changed circumstance.

Even if the wording on the Loan Estimate reads "Before closing, your interest rate, points, and lender credits can change unless you lock the interest rate. All other estimated closing cost expire on" My loan Officer says that gives us room to add the fee because of that verbiage because it was expired. I disagree but why does that verbiage read like that?

I thought you said they signed the ITP the day after receiving the LE?

My bank doesn't use formal rate lock agreements, so perhaps someone who does can chime in, but i'm pretty sure that the absence of a signed rate lock agreement doesn't give the lender carte blanche to fix lender omission errors on the intial LE, if that's the argument that is being made.

You issue an LE, if they give you an intent to proceed by the expiration date on the LE - you are done, unless there is a valid changed circumstance. There are no do-overs.

Only the rate, points and lender credits can change if the borrower doesn't lock the rate.
The second sentence is a stand alone statement and does not reflect back on the first.
The borrower indicated intent to proceed on Jan 6 based on the closing costs you delivered on the LE on Jan 5 which was well before the Feb 5th fee expiration date for the fees.

In case, "All other estimated closing cost expire..." references the fees that already appear on the LE. It does not mean you can add new fees.
"We realized we did not disclose..." is an admission that your bank made a mistake. A mistake is NEVER a valid CC.
You're stuck paying the cure on this one. Costly lesson but hopefully it won't happen again.