Under the CCMA, a regulated entity can impose further charges on arrears arising on a mortgage account when:

• A. Arrears have been outstanding for more than 12 months.
• B. The borrower is not co-operating.
• C. The loan amount is greater than the property value.
• D. The loan amount is less than the value of the arrears.

Answer: (B)

The key idea is that extra charges on mortgage arrears are allowed when the borrower fails to cooperate with the lender’s efforts to resolve the arrears. If a borrower stops engaging, withholds information, misses meetings, or does not respond to requests for documentation, the lender incurs additional costs to manage the arrears and may levy charges to cover those costs. The other options don’t reflect this behavior-based trigger: simply how long the arrears have existed or the relationship between loan amount and property value are about defaults or collateral, not the borrower’s cooperation. So, non-cooperation is the situation that justifies imposing further charges.