So, since I am not an attorney, I will not comment regarding the legalities of what a bank can and can not do. For that you must pay an attorney for guidance.
However, we do know if an enterprise it too big to fail they are too big to govern.
To provide insight regarding common practice requires more information such as the subject property, buyer classification, financial instrument. lender class, lender profile and of course the purchase contract as well as other buyer assets.
Please shed some light on why it is a problem for you when a bank is being generous towards someone who expressed a real motivation to purchase a home and has the wherewithal to meet their obligations?
Best of success,
Annette Lawrence, Broker/Associate
Palm Harbor, FL