Bank wants addendum to remove earnest money language

[Account Closed]

This is my first FSBO sale. I had the seller give me a check for his earnest money and the contract says I would hold it until closing. Other language basically says he won't lose the deposit unless he backs out at the last minute.

His bank now wants me to amend the contract saying the check will be returned to the buyer and to "please omit the earnest money completely from the contract". 

I'm not comfortable with their language on the addendum.

Any recommendations at this point?