Lender backed out after agreeing to terms.

[David Levin]

Hey everyone- 

I signed a term sheet and app with a private lender. Then they ran my credit, which is in the high 700s. We are rolling! But the next morning the broker shoots me an email. It reads 

"I am really sorry but underwriting didn't realize that this was multifamily yesterday afternoon when they reviewed the file. They said this is a loan we won't be able to do right now. I should have been more clear with them when uploading the file".

Insane. Anyone ever had this happen? Can I dispute the hard inquiry?