Here's a question from our loan officers that stumped me. On a consumer mortgage loan cash out re-fi (primary residence), can we require that the customer fund a payment reserve account? The loan will have a 24 month term and all payments will be made from this reserve account.
Additionally, does this affect the APR at all and with the new RESPA regulations, will we need to escrow on this? His credit score is in the low 500's.