If I am in the middle of refinancing my mortgage (closing in 1 week) and I get laid off, do I leaglly have to inform the lender of my lay off?
Well this is a very touchy question for any of us to answer. First I am not an attorney and am not providing you this response for any other reason than to point you in the right direction for the proper advice. In Texas, where I am a licensed mortgage broker, you would be asked to sign another copy of the loan application (1003) at closing representing that the information you submitted is correct. So my answer to you is yes, you would be required to disclose the substantial change in your income as represented in your application for that loan.
Again that is my advice from a mortgage broker perspective and not legal advice. If you were my client and you notified me of this, the first thing I would do is consult an attorney to represent me so I suggest you do so prior to closing. Also the contracts I am in with the investors with whom I sell my loans to require me to disclose any information that I have that reflects the loan I am selling. I would have to disclose it to them prior to closing. I hope this helps you and I wish you the best now that you have been laid off.