Wednesday, 8 May 2019

Questions (130)

Michael McGrath

Question:

130. Deputy Michael McGrath asked the Minister for Finance if under section 40 of the Code of Conduct on Mortgage Arrears 2013, lenders should share with borrowers their documentation of its considerations of each option examined under provision 39 including the reasons the option or options offered to the borrower is or are appropriate and sustainable for their individual circumstances; the reason the option or options considered and not offered to the borrower is or are not appropriate and not sustainable for the individual circumstances of the borrower; and if he will make a statement on the matter. [19102/19]

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Written answers (Question to Finance)

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.