Lender Requiring 12 Months Escrow for Taxes & Insurance

[Jackie F.]

My current lenders for a primary residence I am purchasing is requiring 12 months of escrow UP FRONT AT CLOSING for taxes and insurance PLUS the normal contribution going forward.

I have a shortsale on credit report dating back to Dec 2013 so I am using a subprime lender and this is one of their requirements.

My question is, is this even allowed?  I am scheduled to close on 3/25.  By the time my property taxes are due, I will have approximate 21 months of property taxes and insurance funds in escrow.  Is this allowed by RESPA?