Mortgage Mess! Lot's of Us Might Be Losing Out.

Three months ago, one of my good friends attained an accepted offer on a co-op. It was a second purchase for him and he knew the ins and outs of the entire co-op process. I put him in touch with a few mortgage brokers and he went with one guy who really made sense, and informed him of some amazing products that were out there.
The Contract was signed in December and now after a long process, submitting the package and board approval we were set to close May 1. That was until yesterday.
Some big name banks and many other lenders the mortgage people work with on the wholesale side became very ugly in their rates.
After speaking with the buyer, the finance guy flipped the loan to smaller bank who has a great 7 year ARM @ 5.375% with a point.
Everything was great until they came back and said their guidelines require all 4+ story buildings to have an elevator. Ughhh! What a MESS! To make it worse the next best bank was @ 6.25% without points.
Long story short, The "Big Bank" or (retail) had better terms then their wholesale counterpart for the buyer's scenario.
So now the next step is re-submitting all the papers to the board hoping it is approved. So at this moment, The mortgage lost his sale, I may lose mine, and even more of an impact the buyer might lose his deposit. Keep your fingers crossed.