Can a lender increase your interest rate after a good faith estimate?

This is there excuse:

"Unfortunately, due to the change in Lending Guidelines (which we discussed briefly before) 100% financing has been highly effected. Adding stated income into the mix, doesnt improve the situation. We were recently notified of the new adjustments for Home Equity Lines and Fixed 2nd mortgages. All loans closing on or prior to May 1st would be effected. Your rate on the 2nd is 13.625%"

Can a lender increase your interest rate after a good faith estimate?

This is there excuse:

"Unfortunately, due to the change in Lending Guidelines (which we discussed briefly before) 100% financing has been highly effected. Adding stated income into the mix, doesnt improve the situation. We were recently notified of the new adjustments for Home Equity Lines and Fixed 2nd mortgages. All loans closing on or prior to May 1st would be effected. Your rate on the 2nd is 13.625%"
Short answer. Yes they can.

Of course good mortgage brokers will give a better estimate, some broker firms will tell you almost anything to start trying to get your business.