Does my friend have legal recourse against a mortgage company/Government Sponsored Agency?

A few years back, a friend of mine applied for the first home club (a government program that allows first time homebuyers to open a savings account, save for a specified period of time, take homebuyers education, and then receive a grant from the FHLBNY for $7500 towards the downpayment or closing costs of your first home) and was approved based on his income. In order to be approved, you had to be no more than 80% of the median income of your area. He was in the program 12 months, and before he was able to buy a house, he got married, which meant that his wife would have to be added onto the application and the application would have to be requalified based on income at the time of the original application (I know, its hard to follow). Well, earlier this year, that is exactly what they did. They communicated with their Home Buying Counselor, and gave her all the relevant information. The housing counselor, in turn, gave that information to the Community Development officer at the bank, who in turn would present it to the FHLBNY to approve. My friend specifically stated to them he would not be able to buy a house without the grant money. So, after the tax returns and w2s were presented to the counselor, then to the bank, then to FHLBNY, he received an email back stating "FHLBNY has accepted the w2s as satisfactory doentation to income qualify for the first home club program, so they may proceed as a 2 person household". They proceeded, put an offer in on a house, applied for the mtg with the bank, was approved, and scheduled a closing date for the last of the month. Continually along the way, he informed them that he wouldn't be able to afford the house without the grant, and they told him everything would be taken care of. Lo and behold, 3 days before his scheduled closing, the bank gets back to him to tell him the FHLBNY will not approve the grant based on the numbers when they requalified him with his wife. However, all along the way, he was told he was approved to proceed, he took the required cles ($200), he put the offer in on the house and incurred expenses their (nearly $2000.00), and was forced to buy the house without the grant, causing his MTG to be 7500 greater, increasing his payment straining his budget, and also incurring a much higher PMI as a result. The question is posed, does he have any legal recourse against the bank, the government agency who was the intermediary, or the FHLBNY for not approving his grant at the last minute after he was led all along to believe that it was approved ( he has emails showing that fact).