Which of the following would be considered a "material change" in a mortgage application?

A significant alteration in the borrower's credit profile would be considered a "material change" in a mortgage application because it directly impacts the borrower's ability to repay the loan, which is a fundamental factor in the lender's decision-making process. Changes such as a drop in credit score due to missed payments or new debt accumulation can affect the terms of the loan, including interest rates, loan amounts, and the lender's overall risk assessment. Thus, any significant modification to the borrower's creditworthiness necessitates reevaluation of the loan application and may require the borrower to provide additional documentation or explanations.

Minor updates to contact information or even a change in the interest rate offered by the lender do not fundamentally alter the terms or the risks associated with the loan itself. An increase in the loan interest rate may also be relevant, but it could occur as part of standard practices in the loan process and may not reflect a change in the borrower's financial situation. Therefore, the most critical factor involved in assessing material changes is the loan applicant's financial profile, making a significant alteration in their credit profile a clear example of a material change.