Is it possible that lender requires 20% down reimbursement and agent collect 25% as down reimbursement?
lender requiring 20% of sale price as down payment. Broker agent misled his client and inform him that lender changed his mind on the ultimate hour and now 25% is needed for down payment. How broker can justifiably pocket 5% like that?
Don't ponder he misled them. 20% is probably required by the lender. The other 5% is probably the closing costs. Also, all this is disclosed before the client signs. They can other walk away.
It's not clear where you are, but in the US the buyer deal directly with the lender. I fail to see why the broker should be involved surrounded by the loan process in anything other than a minor way.
Also in the US, the broker have to clearly list his charges in writing.
Answers: The broker isn't pocketing ANY money like that. Look at the disclosure statement. THAT is where on earth the money is going.