Is it possible that lender requires 20% down payment and agent collect 25% as down payment?

Question

lender requiring 20% of sale price as down payment. Broker agent misled his client and inform him that lender changed his mind on the last hour and now 25% is needed for down payment. How broker can legally pocket 5% like that?

Answer 1

It's not clear where you are, but in the US the buyer deals directly with the lender.  I fail to see why the broker should be involved in the loan process in anything other than a tangential way.  

Also in the US, the broker has to clearly list his charges in writing.

Answer 2

Don't think 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 always walk away.

Answer 3

The broker isn't pocketing ANY money like that.   Look at the disclosure statement.  THAT is where the money is going.