Mortgage Loan Applics must open a Deposit Acct

Is there any issue for requiring an applicant to open a deposit account at the bank if it will be the same for all applicants?

No problem at all, except for the people that walk down to the next bank that does not require it. Or the people that put $10 in it and it ends up costing you $50 a year to service it.

I mentioned that could be an issue, but they still want to require it, so I just want to make sure there is no regulatory issue with it.

Remember - if this is a requirement anyone who has this 'waived' needs to be tracked and reported as an exception. We all know that there will be some 'good' customers who won't have this requirement.

What they can't do is require automatic payments from that account as "Compulsory Use" is prohibited by Reg E 1005.10.

Thanks everyone for your excellent input!