The controller shouldn't ask for new folders. In the path you specified in the output of the cifs homedir command, there does need to be a folder already in existence for each user. The homedir path just allows for the automatic creation of a cifs share for each user w/o having to create separate cifs shares for them.
Not sure exactly what issue you might have run into. Could you elaborate further?
The biggest obstacle to autocreate would be to determine where to create it. The 7-mode file /etc/cifs_homedir.cfg is a list of directories to be searched for the user's home directory. Which directory in the list would you choose?