Can a bank require a borrower to deposit 3 months cash reserve for mrtgage payments into a savings account if the LTV exceeds 85%? First time running into this. Thanks for the help.

I have done this on commercial and/or construction loans before but never a consumer note. In thinking it through I see no reason not to, unless you were doing so in a way that looks like a disperate treatment. Make sure you show this on your GFE and include it as paid outside closing, unless you are financing that part too.

THanks, still looking into this, I agree with you have never seen it on a consumer loan and so far does not pass the smell test me.