The Central Bank has said it will investigate all Irish-based financial institutions who have offered tracker mortgages, to determine if customer rights were fully honoured and also ensure the lenders have complied with regulatory requirements.
It has written to all relevant lenders requiring them to put in place a robust plan and framework to carry out the review, including having the appropriate governance and controls in place.
In October, the Central Bank announced it was undertaking a "broader examination" of tracker mortgage-related issues at lenders.
Under the latest review, lenders will also be required to appoint independent third parties to provide assurance to the Central Bank on the adequacy and appropriateness of their reviews.
The deadline for these plans and frameworks to be in place is the end of March 2016.
The examination covers all lenders that offered tracker mortgages to customers, including both for the family home and investment properties from when the lenders started to offer such mortgages, up to the end of 2015.
Permanent TSB has already established a Mortgage Product Review Group to assess its own mortgage product suite and establish if there were instances where the contractual terms and conditions attached to mortgage accounts have not been honoured by the bank.
This followed the identification in July of approximately 1,100 mortgage customers at the bank who, following an investigation by the Central Bank, were found to have lost a contractual right to a tracker rate mortgage.
The Central Bank says the purpose of this latest tracker mortgage review is to identify any cases where customers’ contractual rights under the terms of their mortgage agreements were not fully honoured and/or lenders did not fully comply with the various requirements and standards regarding disclosure and transparency for the customer.
The examination requires lenders to carry out a review in order to identify customers who have been negatively impacted and, where there has been any detriment, to provide redress in line with redress principles determined by the Central Bank.