Change in Lender Credits after committed to Loan

[Jerome S.]

I've been working with LoanDepot on a cash out refi for one of our rentals (a duplex).  I've locked in the rate, paid for the appraisal (which was completed today), paid for my credit check and submitted all the paperwork.  Basically, they're just waiting on the appraisal price to be within a certain amount and they can move to get the closing documents.  

HOWEVER, today I just received an updated Loan Estimate with a $1260 reduction in the lender credits.  Basically they were providing a lender credit of -2352 and today they updated that to -1092.  How is this even fair at the late hour in the game?  I expect the appraisal to be received tomorrow and was just talking with the loan officer today about potentially scheduling closing in the next 10 days.

Love to hear your thoughts on such an infuriating 'bait and switch' move.

[David Kelly]

As a lender, I see this as completely bait and switch unless they provided you a solid reason regarding the approval.  With no explanation I would email them and get one.  The only thing I can think of is that they provided you a credit when giving you your rates and then the market moved against them and when you actually locked it was less.  But still, they should have fully disclosed whatever situation it is.