Mortgage Arrears Resolution Process Booklet

Our Mortgage Arrears Resolution Process (MARP) Booklet provides guidance, practical support, and information on repayment options available to members experiencing mortgage repayment difficulties, helping you engage early and explore sustainable solutions.

MORTGAGE ARREARS RESOLUTION PROCESS

Arrears Support Department arrearssupport@alturacu.ie 053 94 88709 (Direct Line)

WE ARE HERE TO HELP

We understand that your financial circumstances can change and this can result in you being concerned about falling into arrears or you could already be in arrears on your mortgage repayments. Altura Credit Union are committed to helping you. This guide is to help you or if you have any concerns about meeting a repayment on your mortgage. Whatever the cause of your financial problems, the most important thing is that you communicate with us so that we can examine all the practical options available to you. The earlier we know about your difficulties, the earlier we can help you. HOW WE CAN HELP YOU The Central Bank of Ireland has a Code of Conduct on Mortgage Arrears (CCMA) to provide protection to mortgage holders. Under the CCMA, Altura Credit Union Ltd. has implemented a four-step process called the Mortgage Arrears Resolution Process (MARP). The MARP is a four-step process that aims to engage with, support and find resolution for our mortgage customers who are in arrears, or are at risk of going into arrears. It is very important that you understand the obligations that the Code places on you. You must co-operate with us to tackle your repayment difficulties. If you do not work with us or provide the information we ask for, you will be considered to be ‘not co-operating’ and will lose the protection given to you by MARP. Note: The Code applies to a mortgage taken out on your primary residence which is the residential property you occupy as your home or your own residential property in the state even if you do not currently live in it.

[1]

THE MORTGAGE ARREARS RESOLUTION JOURNEY

Our Communications Promise

We promise to communicate with you throughout the process and to work with you to achieve a suitable resolution. • Our communications will be clear, concise and easy to understand. • Our communications will never be aggressive, intimidating or harassing. The volume of communications will be proportionate and not excessive. • You will be given sufficient time to complete any actions required before follow-up communication is attempted. • Future communication will be agreed so that you are aware of any next steps. • We strive to treat all our members fairly and to act to the highest standards of professionalism and compassion at all times.

[2]

STEP 1 COMMUNICATION

The most important step is to contact us as soon as possible. We understand that facing your financial problems can be daunting, the sooner you contact us, the sooner we can start working on finding a solution. It is also important that you respond to any communication we send to you.

If you have a preferred way to communicate, please let us know and we will do our best to use that method. Generally, we use a combination of email, text messages, phone calls and there are some standard letters we'll need to send as part of this process. We will need to communicate with you: - if we need to clarify some information. - if you haven't responded to us in an agreed timeline. - if you haven't met a payment arrangement. We will make sure we only make contact when necessary and have trained and knowledgeable staff if you would like to discuss any aspect of your mortgage. Just ask to speak to one of your credit union’s arrears support team. You can also contact the Money Advice and Budgeting Service (MABS). They provide independent financial advice free of charge.

THE FIRST AND MOST IMPORTANT STEP YOU CAN TAKE IS TO TALK TO US AS SOON AS YOU KNOW YOU ARE IN DIFFICULTY OR ARE AT RISK OF GETTING INTO DIFFICULTY.

[3]

STEP 2 FINANCIAL INFORMATION

We need to get a clear picture of your finances. We will provide you with a Standard Financial Statement (SFS) to fill in. This is a form specially designed to give us a detailed understanding of your finances. You can get the SFS through our website or you can call one of our team to send this out to you.

If you need help to fill out your SFS, don’t ever be afraid to ask as there are several options:

There is a ‘Guide to completing the SFS’, at our website www.alturacu.ie or you can call us on 053 94 88709 and request one to be sent to you.

One of our team can help with this in a way that suits you, either by phone, in our offices or a virtual meeting.

You can also get independent advice to help you fill in the SFS or help from MABS– see ‘Useful contacts’ on pages 14 & 15.

Your SFS is an important tool for us to assess the supports that might suit your needs. Completing this in an open, honest and transparent way will make sure that the solutions we offer will be appropriate. We might also need to ask you for some documents (like payslips or statements) to support the information you provide.

[4]

STEP 3 ASSESSMENT

When assessing requests for an alternative repayment arrangement (ARA) we will use the following information provided by you to assess your individual situation.

The information provided in your SFS

Your personal circumstances – household income, expenditure and household budget.

Your overall personal debt.

Your current ability to make repayments.

Your previous repayment history.

Any other relevant personal information.

The long-term sustainability of the mortgage.

At the end of the assessment stage, we will have a clear picture of your individual situation and whether it meets the criteria for any alternative repayment options or measures. Our goal is to keep you in your family home wherever possible, where you are working with us to prioritise your mortgage repayments.

[5]

STEP 4 RESOLUTION

Once we have gathered and assessed all the information relating to your financial circumstances, we will work with you to explore all possible options. While we can’t guarantee a specific outcome, we are dedicated to finding an appropriate resolution for you, wherever possible. We outline below a list of potential resolutions and the key features of these arrangements for illustrative purposes only. A resolution being offered is subject to your individual circumstances and our assessment of your SFS. As such the following options may not be suitable for your particular situation

OPTION 1

‘Interest Only’ You will only pay the interest owed on your loan during this period. Your monthly repayment arrangement reduces as you are not paying anything towards reducing the capital balance of the mortgage. After the interest-only period, either your payments increase to a higher amount that ensures you repay your mortgage within the original term or where appropriate, the term of your mortgage will be extended.

[6]

OPTION 2

‘Reduced Monthly Repayments’

Your monthly repayment is reduced to match your affordability for a fixed amount of time – this generally can be 6 to 12 Months. Both interest and capital will be repaid. After the reduced repayment period, either your payments increase to a higher amount that ensures you repay your mortgage within the original term or where appropriate, the term of your mortgage will be extended.

OPTION 3

‘Repayment Break’

You can enter into an arrangement to defer the payment of all or part of your mortgage repayment for an agreed period of time to ease the immediate financial pressure on you – generally for up to 3 months. After the deferral period, either your payments increase to a higher amount that ensures you repay your mortgage within the original term or where appropriate, the term of your mortgage will be extended.

[7]

OPTION 4

‘Extension of loan Term’ The term is extended so you pay the mortgage over a longer period, resulting in a lower monthly repayment. ‘Capitalisation of the Arrears and Interest’ The outstanding arrears and interest are added to the capital balance, so you are no longer in arrears. To ensure the arrears amount is paid off, either your payments increase to a higher amount that ensures you repay your mortgage within the original term or where appropriate, the term of your mortgage will be extended your repayments by spreading the amount of any arreears and interest over the remaining term of your mortgage agreement.

EACH OF THE OPTIONS FOR ALTERNATIVE REPAYMENT ARRANGEMENTS HAS STRICT QUALIFYING CRITERIA, WITH EACH CASE ASSESSED ON AN INDIVIDUAL CASE- BY-CASE BASIS.

Important points to note in relation to alternative repayment options:

Any new arrangement (and past arrears) will be reflected on your credit history. This is a key assessment tool lenders will use to process any credit applications you make.

An alternative repayment arrangement may be affordable for you in the short term but could be more expensive over the life of the loan.

• You need to fully understand the implications of any new loan arrangement before you formally accept it. We strongly recommend that you obtain independent legal, tax and financial advice before agreeing to any resolution arrangement, in particular if you have any questions as to the legal, tax or financial implications of the arrangement.

[8]

Important points to note in relation to alternative repayment options:

• Amending the repayment schedule, term, or frequency of your mortgage will impact the benefit(s) covered by your Mortgage Payment Protection Plan.

• We strongly recommend that you get advice on your life assurance needs.

• You have the right to make a complaint at any time in relation to the treatment of your case under the MARP process or the credit union’s compliance with the MARP process. Complaints can be made in various ways, for example, by telephone, in person, through your local branch, in writing or by email. Please refer to the Complaints Procedure on our website. • Once you remain within the MARP process, we will continuously monitor any alternative arrangement once it is put in place to establish if there has been any change in your financial circumstances since the arrangement was put in place, or if you do not keep to the terms of your arrangement.

[9]

IF WE. . . . Do not offer you an ARA, for example where we have concluded that the mortgage is unsustainable, and an ARA is unlikely to be appropriate; or

Offer you an ARA that you are not willing to accept

We will inform you in writing of other options that are available to you.

In those circumstances, we may commence legal proceedings for repossession of your home either 3 months from the date the letter informing you of your options is issued, or 8 months from the date that the arrears first arose on your mortgage, whichever date is later. Legal proceedings for payment or re-possession can be very costly for all parties and if the property is disposed of you would remain liable for any outstanding debt, including accrued interest, legal, selling and other related costs.

YOU CAN APPEAL You can appeal a decision made by us during the MARP, including where:

We offer you an ARA, but you are not willing to enter into the ARA offered.

We decline to offer an ARA.

We have classified you as ‘not co-operating’.

Appeals Board Arrears Support Dept. Altura Credit Union Ltd. McDermott St., Gorey, Co. Wexford. Y25 XV05

YOU MUST WRITE TO US WITHIN 20 BUSINESS DAYS OF RECEIVING A LETTER FROM US IN RELATION TO ONE OF THE ABOVE SCENARIOS, SETTING OUT THE REASON FOR THE APPEAL, AND ADDRESS YOUR APPEAL TO:

The Appeals Board will acknowledge your appeal in writing within 5 business days of receiving your appeal. The Appeals Board will provide you with regular written updates on the progress of your appeal at intervals of not more than 20 business days. The Appeals Board will consider and adjudicate on your appeal within 40 business days of receiving the appeal and will notify you in writing of their decision within 5 business days of their decision. If you are unhappy with a decision of the Appeals Board, you have the right to refer the matter to the Financial Services Ombudsman (see Useful Contacts on pages 14 & 15).

[11]

WHAT DOES ‘NOT-CO-OPERATING’ MEAN ?

Under the code, you will be classed as ‘not co-operating’ which means you would lose the protections of the Mortgage Arrears Resolution Process.

Information about when we would classify you as ‘not co-operating’ and the impacts of this are included in the table below. The most important thing you can do to keep the protections of MARP is to continue engaging with us in an open and honest way.

If:

• You failed to give us full and honest information that has a significant effect on your financial information and • We have sent you a warning letter as required by the code, but you have not carried out the action specified in that letter.

• You did not give us relevant information about your financial situation, within the timescale we specified; and • We have sent you a warning letter as required by the code, but you have not carried out the actions specified in that letter.

[12]

WHAT DOES NON-CO-OPERATING MEAN ?

If you have entered into an alternative repayment arrangement with us and since then there has been a three-month period during which: • You have failed to pay the new repayments under the alternative repayment arrangement in full and you: • You have failed to contact, or respond to any communication from us, or a third party acting for us; or • You have contacted, or responded to communications from us, or a third party acting for us, but have not done everything required for us to complete an assessment of your circumstances, and: • We have sent you a warning letter as required by the code, but you have not carried out the actions in that letter. The consequences of ‘not co-operating’ are serious. Those consequences are set out in the code and include the following. •The MARP no longer applies. • We may apply legal fees, charges and extra interest on arrears. • We may commence legal proceedings to repossess your property immediately after you are classified as ‘not co-operating’. In this case, irrespective of how a property is repossessed and disposed of, you will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs. • You may no longer be eligible for Personal Insolvency Arrangement (PIA) under the Personal Insolvency Act 2012. For information on PIAs, contact the Insolvency Service of Ireland. Their contact details are on pages 14 /15.

If you have not entered into an alternative repayment arrangement with us and there has been a three-month period during which: • You have failed to pay your mortgage repayments in full, or you have made your mortgage repayments in full but are still in arrears, and: • You have failed to contact or respond to any communications from us, or a third party acting for us.

• You have contacted, or responded to communications from us, or a third party acting for us, but have not done everything required to enable us to complete an assessment of your circumstances; and • We have sent you a warning letter as required by the code, but you have not carried out the actions specified in that letter.

[13]

USEFUL CONTACTS

Altura Credit Union Ltd. The arrears support department are on hand six days a week to discuss your situation with you. You will be dealt with in a compassionate and professional manner at all times.

Stepchange Debt Charity Ireland

Stepchange Debt Charity Ireland (www.stepchangedebtcharity. ie) is a free and independent telephone advice service for people who are struggling with debt or mortgage payments. They will review your financial circumstances and recommend the best way for you to deal with your debts.

We strongly recommend regular communication.

Telephone 1800 937 435

053 94 88709 (Direct Line) arrearssupport@alturacu.ie www.alturacu.ie

KeepingYourHome.ie Provided by the Citizens

Information Board and MABS, this website provides comprehensive information on the services and entitlements available if you are having difficulties making your mortgage repayments. It also provides information on MARP.

Abhaile Abhaile is a State-funded

scheme to help homeowners find a resolution to their home mortgage arrears. It provides free, confidential, and legal advice from independent, qualified and regulated professionals, which can be accessed through MABS.

www.keepingyourhome.ie

Money Advice and Budgeting Service (MABS) MABS (mabs.ie) offers free and confidential independent advice and assistance with managing your finances. You may wish to seek assistance from MABS

Telephone 0818 072 000

Financial Services & Pensions Ombudsman Bureau

Telephone: 01 567 7000 E-mail: info@fspo.ie

Telephone 0818 072 000

[14]

USEFUL CONTACTS Citizens Information The Citizens Information Board is

The Central Bank of Ireland The Central Bank’s website

the statutory body which supports the provision of information, advice and advocacy on a broad range of public and social services including health, employment, social welfare and money. If you are in mortgage arrears or are worried about mortgage arrears.

provides independent information on financial products and includes a consumer guide to dealing with your lender on the Code of Conduct on Mortgage Arrears.

Telephone 0818 681 681 www.centralbank.ie

Insolvency Service of Ireland Under the Personal Insolvency Act 2012, you have the right to consult with a Personal Insolvency Practitioner. For more information, please refer to their website at:

Telephone: 0818 074 000 www.citizensinformation.ie

Department of Social Protection The Social Welfare website provide information relating to job seekers allowance, mortgage interest supplement and other welfare benefits you may be eligible for.

www.isi.gov.ie

Competition & Consumer Protection Commission (CCPC) ICCPC has some good budgeting and money management tools that you might find helpful.

www.welfare.ie

Office of the Revenue Commissioners

This website will provide you with information on all tax credits and benefits you may be entitled to.

Telephone: 01 402 5555 www.ccpc.ie

www.revenue.ie

[15]

OTHER IMPORTANT INFORMATION:

Payment Protection Insurance

Legal proceedings

We only start legal proceedings to repossess and sell your home as a last resort. If the proceeds we receive from selling your home do not cover all amounts you owe us (including unpaid interest and charges, and any legal and selling costs), you will have to pay the outstanding amounts. If we take legal action to repossess a property, we estimate that the costs will be more than €3,000 (and could be far more). That estimate is for Circuit Court proceedings and takes account of solicitor’s fees, expenses and VAT (but not barrister’s fees or other fees and costs that arise in some cases)

If you have previously purchased payment protection insurance for your mortgage loan, it is important that you contact your insurance provider as you may be entitled to make a claim on that policy. If your mortgage is in arrears, the amount of your protection insurance may not be sufficient to cover the outstanding balance Credit reference agencies If you are in arrears, details will be recorded by credit reference agencies such as The Central Credit Register. This could make it more difficult for you to get credit

from us or other financial institutions in the future. For example, you may have difficulty getting g a loan, overdraft or credit card.

[16]

REGULATORY WARNINGS If you do not meet the repayments on your credit agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future. . Warning: Warning: Warning: If you do not keep up your repayments you may lose your home. Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.

If you have a variable interest rate mortgage:

Warning: The payment rates on your housing loan may be adjusted by the lender from time to time

Warning: The cost of your monthly repayments may increase.

If you have a fixed interest rate mortgage:

Warning: You may have to pay charges if you pay off a fixed-rate loan early.

MORTGAGE ARREARS RESOLUTION PROCESS

Arrears Support Department Contact Details: arrearssupport@alturacu.ie 053 94 88709

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20

Made with FlippingBook - professional solution for displaying marketing and sales documents online