Can our mortgage company change the loan terms after closing b/c they miscalculated the lender credits?

We recently refinanced our house. As part of the deal we were supposed to get some cash out as well as a lender credit to offset our closing costs in exchange for a higher interest rate. We had been working with two lenders throughout the process to compare. On the Loan Estimates "lender A" listed the lender credit clearly, however "lender B" said it wouldn't show up until the Closing Disclosure. The terms for each lender were roughly the same but we liked the personality of lender B more and we went chose them. When we received the Closing Disclosure from the lender the lender credit was listed on there as stated and so we signed off on it. Now on Friday we just signed all of our final paperwork (Closing Documents). Since it is a refinance we had 3 days to rescind the offer which was up at midnight last night. But we got a call last night from the lender saying he miscalculated the closing costs and that our lender credit exceeded the closing costs and now everything would have to be redone. I thought all that paperwork we signed was a final contract? Are they allowed to tell us we have to redo everything now because of an error on their part? We are in California and we are doing an FHA loan. My instinct is to contact my attorney but thought I would check here first. Thanks in advance for any insight. by caarktct66 from San Diego, California. Oct 26th 2016 Reply