If we disclose that the borrower must lock the interest rate at least 10 days before settlement, can we close the loan within that timeframe if all parties agree to? We are on day #7 and we have fully approved the loan, and the borrowers want to go to closing, are we allowed to, or do we have to wait until the 10 days have past?

No, you don't have to...that's just so you have room to do what you need to do IF you need to do it, and deliver it to an investor...if all's good, then you should have no reason to delay.

That's what I was thinking too. Thanks for the confirmation.