There was a new CCMA which came into effect on 1st July 2013. The objective of the CCMA is ultimately for the lender to assist the borrower in meeting his or her mortgage obligations.
The CCMA specifically applies to mortgages secured on a property that is the primary residence (family home) of the borrower – it does not apply to residential investment properties. Lenders are expected to deal sympathetically with borrowers and the CCMA explicitly recognises that each case of mortgage arrears is unique and needs to be considered on its own merits.
The CCMA is a mandatory process that lenders must engage with, as it is issued under Section 117 of the Central Bank Act 1989. The CCMA imposes the following obligations on lenders:
- Each lender must establish an Arrears Support Unit.
- Must draw up and implement procedures.
- Must have in place management information systems.
- Must train its staff
- There are restrictions from imposing charges and/or surcharges.
- Must have in place a Mortgage arrears Resolution Process