You would draft up a letter of explanation to go with the paperwork submitted to the UW. 

@Holly Chan thank for the extremely thorough explanation.

@Thom MacFarlane - appreciate the explanation regarding fees and how loans are sourced thank you!

So finally the only explanation is that the locking mechanism somehow became unlocked halfway through an open cycle, which would be generous to call that unlikely, but perhaps not impossible.

A local example for me would be that Oklahoma City, OK is great to own property in, but I would never recommend buying in Bug Tussle, OK as the market is unproven (plus the population of 5 is very volatile).I hope my explanation is useful :) 

However since it is a property that you own, I would tell them you're considering them for the property but would like an explanation for the collection accounts.

., & @Timothy Church for you input.Correct, in regards to non-disclosure, this is very helpful explanation though as I would not have explained it as clearly as you Timothy.Based on our research, we have noticed that the rental pace in the city has gone down this month.

I would call and ask for an explanation of the charges on the settlement statement before you call around, so at least you will compare applies to applies.

Here's a more detailed explanation of what' happens...and why:1 - There are two types of REFI's - Rate and Term, and Cash out2 - Rate and Term Refi is where you refi strictly to get a better terms (int rate, term, monthly pmt) than what the original loan (existing loan) terms are. 

Basically, it's the body mass index of real estate investing: easy to calculate, but not providing much real insight.That said, the best explanation I've seen so far is here: https://www.biggerpockets.com/...