Are banks required to require PMI like mortgage lenders. If so, is it only for non-conforming and or higher priced mortgages that will be subject to escrow?

In general, according to supervisory guidance, banks should not originate loans with LTVs in excess of 90% unless there is some sort of credit enhancement. PMI typically serves this purpose. From a consumer compliance perspective, it is not required. PMI protects the bank, not the borrower.