Does this sound odd to anyone? Message from a lender

[Laura Spaulding]

I have researched some previous posts about the Robert & Pamela Smith Investment LP. I saw that no one was funded and things seemed sketchy. They sent me a loan approval without really anything other than a one page application.  So no due diligence at all.  When he sent me the loan approval, I responded back with this email,

Hi. I don’t think your math is correct on the loan repayment (mortgage) amount. 30 years of $540K at 5% is a monthly payment of $2898.84.
Am I making a 20% downpayment to you and then another $27,000? I don’t understand that clause and why the loan amount went up to $567K in the contract.

I received this email back from Daniel, who is the "underwriter".  

Hi Laura, We do not use mortgage calculations as they are most times wrong.Kindly review the calculation breakdown below and you will understand how we arrived at the monthly payment
The loan was calculated for principal and interest at 5% annual interest for 30 years
Loan amount : $540,000.00Number of payment: 360Monthly loan payment: $3,750 ($1,350,000.00/360)Cumulative payment : $1,350,000 ($810,000+$540,000)Total interest paid : $810,000($27,000x30)
It is believed that when you need a loan of a certain amount, you should be able to come up with at least 5% down payment.
The 5% down payment deposit of ($27,000) is required for the closing of the loan which is a 100% refundable deposit that would be paid out along side the total loan amount at funding .. making it a total sum of $567k
This done to prove our financial capability towards utilizing the loan funds and paying back the loan once due
There are no additional fees or surprise costs.

Does this seem odd to anyone or is it just me?