The Code of Conduct on Mortgage Arrears (CCMA) is the main code of relevance to people whose mortgage is in arrears or in danger of slipping into arrears.
The original CCMA came into effect in February 2009. The code was revised in the light of recommendations from the Expert Group on Mortgage Arrears and Personal Debt and the revised code came into force on 1 January 2011. The CCMA is a statutory code.
The Code sets out the framework that lenders must use when dealing with borrowers in mortgage arrears or in pre-arrears. It requires lenders to handle all such cases sympathetically and positively, with the objective at all times of helping people to meet their mortgage obligations.
Under the revised CCMA, lenders must set up the following:
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A Mortgage Arrears Resolution Process (MARP) to be used when dealing with arrears and pre-arrears customers. The 5 steps for the MARP are: communication; financial information; assessment; resolution and appeals.
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An Arrears Support Unit (ASU) to assess arrears and pre-arrears cases
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An internal Appeals Board to consider appeals from borrowers in relation to ASU decisions and the lender’s treatment of the borrower’s case under the MARP. This appeals process replaces the complaints process under the Consumer Protection Code.
Lenders must also:
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Ensure that communications with borrowers are presented in a clear and consumer-friendly manner
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Make an information booklet available to borrowers in arrears (or pre-arrears) including details on the MARP, relevant contact points for arrears issues and details of websites with mortgage arrears information, such as mabs.ie and keepingyourhome.ie
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Provide a dedicated section on their website for borrowers who are in or facing financial difficulties. This section must include the above booklet and links to the above websites.
Lenders must not:
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Initiate more than 3 unsolicited communications with a borrower, by whatever means, in a calendar month other than correspondence required by the CCMA or other regulatory requirements
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Require a borrower to change from an existing tracker mortgage to another mortgage type, as part of an alternative arrangement offered to the borrower in arrears or pre-arrears.