The Code of Conduct on Mortgage Arrears requires that a regulated entity records all telephone calls made to or from a borrower when the:

• A. borrower makes contact with someone in the branch network.
• B. borrower is not co-operating.
• C. borrower advises that they are in a pre-arrears situation.
• D. contact is made to or from the Arrears Support Unit (ASU).

Answer: (D)

The key idea is that when mortgage arrears are being handled, there is a formal path through the Arrears Support Unit. Recording all telephone calls with the borrower specifically when the contact is with the ASU creates a clear, auditable trail of how arrears discussions and decisions were conducted. This ensures transparency, consistency in handling arrears, and evidence of forbearance offers or agreements, which protects both the borrower and the lender and supports regulatory compliance.

Other situations, such as interactions in a branch, pre-arrears status, or the borrower not cooperating, aren’t the triggers for this particular recording requirement. The emphasis here is on calls involving the central arrears unit, where the formal arrears process takes place.