A question about the process of applying for a mortgage?

I made a mortgage loan application through a mortgage broker. About a week later the broker called and told me the loan was approved. About a week later the broker called and said the mortgage company needed additional information, and I was to resubmit the application – which I did. This cycle then occurred again. I submitted the third application. It was approved, however the interest rate was higher than what was approved for the previous submission. I questioned this to the broker, and was told that this was acceptable practice. We closed based on the third application. Is this practice legal?
The mortgaged property is in Leon County FL. The Mortgage lender was in FL. The broker was a family acquaintance. All three applications went to the same lender. I did propose another lender to the broker early on in the process, however he said that we were too far into the process to change. All the communications I received were by telephone. The documents I have are the copies of the three applications that I signed and a fax I sent to the broker questioning multiple applications when the first one was said to be approved, and the resultant increase in the interest rate. In hind-site I suspected steering and collusion. That broker is no longer in business.

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