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When applying for a home morgage is a bank allowed to use cross collateralization forcing you to open chkng acct to secure loan

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( this was a refiance from one insitution to another and they would only give us the loan if we opened a new checking account. (we already have 2 checking at other banks). There were no outstanding debts at all and certainly none with this bank. Never a late payment on morgages either.

Attorney Answer

1
Irving Sonkin ·
Typically banks charge a higher interest rate if you do not have an account at the bank. If the loan is attractive enough, you can open a new checking account and use it exclusively to pay the mortgage payment. In general , the bank can require you to retain an account with them.
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