Underwriting denies loan due to weird deal structure.

[Brady Macdonald]

Summary of what’s happening:

I found an off market deal from a wholesale company for 165k ....155k for the property and 10k fee. They structured the purchase agreement with a purchase price of 165k, the appraisal came back at 155. They then changed the agreement to 155 and 10k agent fee. My broker didn’t like the structuring and we agreed it was weird but was still what we agreed too. Fast forward and the underwriter will not move forward with approval. The manager of the company has spoken to the underwriter to remedy the situation with no success . Not only do I potentially loose my Ernest money and obviously the profit and time I spend on this property.

My question :

Who is in the wrong ? Is it ethical/ legal for him to contact the underwriter? And should I get my Ernest money back ?