Can a lender raise interest rates before a rate lock expires?My son received a rate lock from his lending bank. It appears the bank is actually a third party broker, and the lender is an "investor". After explaining to the bank 3 times that his wife had stopped working, a fact not reflected on the previous year's 1040, and that his projected income should be based on his income alone, the bank -- without my son's knowledge -- calculated his debt ratio on his and his wife's former combined income. The interest rate was set and locked with this erroneous information. 15 days before closing, the bank has discovered the discrepancy and calculated a higher debt ratio. They now claim they must move the mortgage to a different "investor" who will accept the debt ratio, but at an interest rate .125% higher. Can the bank legally do this? What's going on here?November 07 2013 - Boston0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.