In order to recieve a favorable rate ona loan, can the bank mandate that the borrower also open and maintain a checking account with the bank as well?

Isn't there an anti-tying rules to something like this?

It's okay. Anti-tying rules has to do with non-traditional services, not regular banking services.

If by "favorable rate" you mean that you offer 2 rates on a loan product. The regular rate and then a discounted rate for tying a service. That is not requiring tying to get the loan.

That being said, if the regular rate is 12.95% (as quoted in another string today) and the reduced rate is only 2.95%, there may be questions of fairness.

Al