Lender requiring customer to open a checking account

[Freeman Schultz]

Is it a common practice for banks or lenders requiring customers who take out mortgages to open checking accounts at their bank?

There is a bank that I heard about that requires their customers to open checking accounts if they get a mortgage at that bank. Instead of the customer sending a check every month, the banks wants to be able to get their payments automatically from the checking account. If the customer refuses, the bank charges the customer a higher rate on their mortgage.

Besides going to another bank or lender, is there a way to avoid that?