We have a transaction that closed. Borrowers are choosing to rescind. They want to increase the loan.
Can we use the current transaction/documentation and issue a revised CD? or do we have to start with a new transaction?

If the borrower truly rescinded then that transaction is dead and you must follow 1026.15(d) or .23(d) whichever is applicable to the transaction.

If they simply want to modify the existing request then how you proceed would be up to your internal policy for such a request.

Thanks Dan for the quick response. Regarding Part one of your answer, that is very helpful.

Regarding modifying the existing request...because we have already closed that transaction, would we need to start over like it was a new request? New early disclosures, LE, etc?

It would depend if you modify the existing loan or if you treat it as a new one. Modifications do not require new disclosures.