Jumbo Reserve Requirements for Aggregate Loans

[Min Ji Gal]

My client owns 3 SFRs and a commercial building for their business (in an LLC, used by the business but with personal guarantee). They were told that since they will be purchasing a fifth property with a Jumbo loan (with total value of loans in excess of $4 million) they would need 120 months of reserves for all of the loans put together (about $1 million in reserves). My jaw dropped to the floor.

LO at a big bank researched this extensively but concluded that this was not a mistake. Is this even close to the norm?  

I understand each lender can have different criteria but this seems excessive.