Brokers Ireland Mortgages – Credit Policy Update

Thu Apr 2 2020

Dear Member,

I hope you are all safe and well.  This email outlines four lender updates in relation to policy changes applicable during the current health crisis.  It is important to read the changes and ensure your pipeline of existing mortgage business is addressed as well as applying the changes to applications being submitted in the future.  The changes are in relation to the sustainability of income needed to support applications.

Some best practice advice:

  • Documents or new files can be sent via info@brokersirelandmortgages.ie.  If you do not have a scanner, please call me on 085 837 5602 and I can arrange an alternative solution.
  • When an application proceeds from AIP to Offer or Offer to Fund Issue we would advise that you seek up to date income clarification.  PAYE applicants can submit most recent payslip, where self-employed a letter from accountant confirming turnover has not reduced and 3 months business bank statements is recommended.
  • Closing documents – LIFE and DEED OF ASSIGNMENT.  The legal documents must be submitted in original format and as such we recommend that the original life policy and deed of assignment is submitted via the solicitor.  Again if this is not possible please contact me directly and I can assist you.

In the coming days I will be sending out communication on switcher mortgages as we are seeing an increase in queries relating to same, however you can contact me on any mortgage related issue via email at info@brokersirelandmortgages.ie or via phone on 014922203/085 837 5602.

Brokers Ireland Mortgages remain open and we are processing both new and existing business.

ICS DILOSK UPDATE

I hope that you and your families are all safe and well. In light of the current Covid-19 pandemic, a comprehensive review of our Credit Policy is currently being conducted. The changes, set out below, will be effective immediately (1st April 2020) and are as follows:

Exceptions

Approval of CBI & Lending Policy exceptions have now, temporarily, ceased.

Pipeline applications

A review is ongoing on all pipeline loan offers, to determine the impact of COVID-19 on the borrowers’ financial circumstances. Where their circumstances have changed, we may require further information.

All new and existing loan offers will now need a COVID-19 declaration which will need to be signed by all parties to the loan. I attach a copy of these declarations for both PDH and BTL loans.

The above changes will remain effective until further notice.

3-month Mortgage breaks for existing customers impacted by Covid-19

As previously communicated, PDH and BTL customers who have been financially impacted by COVID-19, can avail of a 3 month mortgage repayment break. Customers can call our customer service team on 1890 542 542 or email customerservice@icsmortgages.ie  Our team will email a simplified application form to the customer. These forms are also on our website www.icsmortgages.ie

Finally, we would like to confirm that we have business continuity plans in place around broker Monthly Commission Payments. The payment of commission due will be processed within our normal timelines.

We will keep you informed of any new developments.

If you have any queries regarding this email, please contact your ICS Mortgages Lending Manager by phone or email and they will be able to assist you .

HAVEN UPDATE

Dear Intermediary

To help you manage your customer’s expectations during this difficult time please note the following;

 Haven Phone Lines – Cheque Issue Queries Only

From Wednesday 1st April the Haven phone will be operating on reduced hours and will  be open from 10am to 3pm for Cheque Issue queries only.

Queries on new Applications , Approvals in Principle, and Loan Offers should be directed by email to your Business Manager. Some Business Managers have been redeployed to assist customers with COVID 19 requests so in these instances please contact your nominated alternative Business Manager.

Haven Turnaround Times

From Tuesday 31st March our turnaround time is 6 days from receipt of all documentation (Haven Approval in Principle Checklist and supporting documents) to approval as long as no clarification is required. Some cases requiring higher sign off may take a little longer. This turnaround time is subject to change daily and may impact Offers in particular.

New and Existing Applications

For all applications at any stage you need to address the following question with your customer :

“Has there been a material impact in your employment and/or income as a result of COVID 19?”

For many, this is a question that is not possible to answer until people return to work and this crisis passes

For new Applications once you have satisfied any other pre-submission queries with your Business Manager depending on applicants employment we may , if required , add conditions which are self –explanatory with an example of wording below :

‘Subject to a letter from your employer stating when you will return to work and if there are any changes to the terms of your employment , prior to Loan approval.’

Similarly some cases for Loan Offer may require written confirmation from the employer confirming that the applicants income is not impacted by the current COVID 19 circumstances.

Please note, your customers are obliged to inform you/us of any changes in their circumstances during all stages of the process from Application to Funds Issue.

We will keep you informed on any developments as soon as possible. If you have any queries on the above, please email your Business Manager. Thanks Haven Mortgages

PTSB UPDATE

Dear Intermediary,

As we are all well aware last Friday, the 27th of March An Taoiseach announced strict guidelines for the people of Ireland which will form part of the next stage of the national response to the Covid-19 emergency. We are also very aware of the impacts that the emergency is having on Health, Employment, Social connections, Economic activity etc… and every service that remains open is operating on reduced capacity due to staffing shortages related to various issues created by Covid-19 and associated restrictions.

As Banking is classified as an essential service, Permanent TSB will remain open to support our customers and to provide our Intermediary Partners with the essential banking services they require. Our Intermediary Sales Managers will continue to work remotely and our Sales Support Team in Blackrock remain adequately resourced to provide you with a consistent service. You may experience some delays regarding the issuing of Loan Offers and the Pay-out of funds as our Operations Department understandably deal with a surge in existing business queries and manage this workload with reduced resourcing. We would ask you for some patience and understanding on this please.

With regard to any of your existing PTSB mortgage customers experiencing difficulties with their mortgage repayments, resulting out of COVID 19 pressure, they should contact our Asset Management Unit (contact numbers listed below) who have all the relevant skillsets and processes to deal professionally with these customers.

  • Pre-arrears/experiencing financial difficulty: 1890 664 433 or +353 21 6013801 (Monday to Friday 9am to 5.30pm excluding bank holidays)

On the new business front the bank remains open for New Mortgage Business with plans in place to ensure the continued availability of both the Intermediary Sales Support Team and our Credit Underwriting team. It is important when talking to your customers that you pay particular attention to stability and sustainability of their income sources. Both Banks and Brokers, being regulated entities, have regulatory obligations to ensure that a loan is suitable to a borrowers circumstances in line with our obligations to lend responsibly under the Consumer Protection Code. In some circumstances the bank may add a condition to an AIP/Loan Offer seeking clarification that the borrowers income remains the same and has not changed from what was previously confirmed to the Bank at the time of approval.

 Finally, at this time of uncertainty, it is important that we confirm that we also have business continuity plans in place around the Monthly Commission Payment process so the payment of commission due will process within our normal timelines.

FINANCE IRELAND UPDATE – Covid-19 & Pipeline Applications

Given the current situation with the spread of Covid-19, it is important that particular attention is paid to the sustainability of applicant income.  As a lender regulated by the Central Bank of Ireland, we have an obligation to all parties to ensure that loans advanced are affordable to applicants and can be repaid from date of drawdown.  Finance Ireland may, in certain circumstances, add a condition to the applicants loan offer seeking confirmation prior to drawdown that the loan amount sought remains affordable.   Similarly, at the point of completion of current pipeline we will be asking clients if their income has been impacted by Covid-19.  Where the client declares an impact or we believe the applicant is employed in an impacted sector we may seek the following:

  • For PAYE applicants we may seek an up to date payslip prior to drawdown that confirms an income level that supports the original application.
  • For Self-Employed applicants we may seek up to date personal current account statements prior to drawdown confirming an income level that supports the original application.

Please note that in certain cases additional supporting documentation may be required and we will, as always, endeavour to apply a common sense approach to managing the impact of Covid-19 on your pipeline applications.

From an operations point of view, please note that Finance Ireland are fully resourced to deal with both new and existing mortgage applications with all teams operating within normal business hours.  Your Business Development Manager is available to you by phone and email and our central phones are fully resourced and available to take your calls.

Best Regards

Kimberley Hyland

Mortgage Manager

Kimberley Hyland Brokers Ireland Network Services

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