I have been advised by the Central Bank of Ireland that Provision 40 of the Code of Conduct on Mortgage Arrears, CCMA, requires a lender to document its considerations of each option examined under Provision 39 including the reasons why the option(s) offered to the borrower is/are appropriate and sustainable for his/her individual circumstances and why the option(s) considered and not offered to the borrower is/are not appropriate and not sustainable for the borrower’s individual circumstances.
In March 2019, the Central Bank issued a letter to all relevant regulated entities in relation to certain obligations under the CCMA. With respect to the specific requirements relating to communications with borrowers where an alternative repayment arrangement (ARA) is offered or not offered, the letter sets out that the Central Bank expects regulated firms to provide the following additional information to borrowers:
1. A copy of the firm’s assessment of the borrower’s case carried out in accordance with Provision 37 and as documented by the firm in compliance with Provision 40; and
2. The reasons why ARAs considered by the firm, but not offered to the borrower, are not appropriate and not sustainable for the borrower’s individual circumstances, as documented by the firm in compliance with Provision 40.
A copy of the letter is available at the following link.