DISCLAIMER - my area of compliance oversight is Retail, Operations and OFAC - and this questions strays to the lending side, which I know very little about.

Now, with that out of the way - is there any regulatory reason that we cannot require a customer to have his loan/LOC advances deposited to a bank account at our Financial Institution? (I'm not talking about loan fundings that we wire to title companies, etc.....)

Thanks in advance for thoughtful and/or thought provoking responses.

Reg E addresses repayment via EFTs, but not funding. Since the Tying Act allows deposit and loan accounts to be required, I don't know of any issue.

You could have a UDAAP issue if there is a fee associated with this, such as access to the account, or some other transaction fee. That would be "playing dirty" IMHO. Otherwise, I know of no prohibition.

Nope - no transaction fees would be associated - only fees would be transaction type fees - NSF/OD/Wire Transfer/Copies/etc....
No min balance, no monthly s/c......