Central Bank Publishes Revised Code Of Conduct On Mortgage Arrears

The Central Bank of Ireland today published the revised Code of Conduct on Mortgage Arrears (CCMA) setting out requirements for mortgage lenders dealing with borrowers facing or in mortgage arrears.

The CCMA provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender, and that long term resolution is sought by lenders with each of their borrowers.

The revised CCMA comes into effect from 1 July 2013.

The publication of the revised CCMA follows engagement with key consumer and industry stakeholders and incorporates feedback from the Central Bank's public consultation, which received a large volume of submissions, as well as the ongoing compliance monitoring, inspection and research conducted by the Central Bank.

Director of Consumer Protection, Bernard Sheridan, said: "The protection of borrowers who are facing or are currently in mortgage arrears, and the resolution of those cases, remains a top priority for the Central Bank. We carried out this review to strengthen consumer protections where necessary and to ensure the Code is facilitating the resolution of each arrears case in a fair, sustainable and transparent way. The changes to the Code support these objectives and ensure that borrowers who cooperate with their lender retain their protections throughout the process.

"We would encourage all borrowers in mortgage arrears to engage fully with their lender to ensure they can avail of the protections under the Code and to enable lenders to deliver long-term sustainable solutions that are in the best interests of their customers."

(CD/JP)