That could result in a reduced loan amount to get back under that 75% cap. But again, it is not technically a changed circumstance unless the result is an increase in a cost triggered by the reduced loan amount and the increase will result in a tolerance violation.
See 1026.19(e)(3)(iv)(A) and (B).
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8