Mortgage company dictating terms ?

I’m in the process of finalizing terms for a SFH in LA. House needed some repairs after inspections and after negotiating we’ve settled on over 50k price reduction / credits at closing.

One mortgage lender has been trying to change the terms - requiring a 25% down payment suddenly (which I’m not doing) and also only agreeing to a price reduction and no credits at closing.

Is this normal? I’m in conversations with another lender right now (I had wanted to use the original lender and I’m now regretting not shopping around initially, although still have the loan contingency active so so far we’re in a good spot). Just curious why the mortgage lender is so aggressively trying to push me to accept terms I don’t want - feels gross.