Mortgage arrears and the MARP process

The Central Bank’s  Code of Conduct on Mortgage Arrears introduced the Mortgage Arrears Resolution Process (MARP), which banks must use when dealing with distressed home loans and to address mortgage arrears. Banks are obliged to engage with the borrowers to attempt to reach sustainable solutions, but its only effect is to defer repossessions.

It’s up to each bank if it ultimately offers a deal to a customer but they must follow the MARP process.  MARP consists of the following steps:

  • Communication with the borrower
  • Financial Information
  • Asssessment
  • Resolution, and
  • Appeals

The MARP code provides that if a home-owner engages with the bank, repossession proceedings are stayed for 12 months, and if the Banks continue to enter into agreements with them, this continues the forbearance on repossession. Nothing in the recent Insolvency Act directly affects the right of a secured creditor to enforce its security.