Why is nram closed

Arrears and possessions - NRAM r etained loans. The total number of properties in possession decreased from at 31 March to 35 at 31 March LPA 'for sale' stock was 16 cases at 31 March March 8. IFRS 9 replaces the IAS 39 'incurred loss' approach to impairment provisioning with a forward looking 'expected loss' approach. Based on the age of the loan books and the Group's business model, all loans to customers have been categorised as stage 2 or 3; this approach is permitted by the undue cost and effort dispensation of the IFRS 9 transitional provisions.

Stage 2 loans are those for which there has been a significant increase in credit risk since the asset's origination. Stage 3 loans are those which are in default. As a result, the impairment provision reflects full lifetime expected losses.

Forward-looking assessments are made which are dependent on economic assumptions including interest rates, unemployment and house price inflation. Economic assumptions are sourced from specialist economic analysts and approved by the Board.

Under each scenario, expected losses are derived based on assumptions for the probability of cases falling into arrears, redemption rates, sales and losses, monthly payment rates and post-term end performance.

These assumptions have been based on historical performance at segment level. Following refinement of the modelling assumptions, the provision was restated. The increase has been charged to retained earnings. As a proportion of balances, the residential loan impairment provision was 1. As a proportion of balances the provision represents coverage of 2. The effective tax rate of The Company met its capital requirements in full throughout the year and has received no additional capital from HM Treasury.

Total equity was unaffected by these transactions. Principal risks and uncertainties. The following sections describe the Group's major risk categories under management. Other factors could affect the Group's results, including economic factors. Therefore, the categories of risk described below should not be considered to represent all of the potential risks and uncertainties which could impact the Group. During the year the Group categorised risk under the following headings:.

Conduct risk is managed at a UKAR Group level and is defined as the 'risk of treating customers unfairly and delivering inappropriate outcomes leading to customer detriment or impacting market integrity'. It ensures a joined-up and consistent approach to the management of conduct risk and is integrated into business strategy, management and decision making. The CRF sets out the approach to the effective assessment, management and monitoring of conduct risk in accordance with our stated conduct risk appetite.

UKAR has a zero risk appetite for systemic conduct risk that could lead to unfair customer outcomes or pose a risk to market integrity, including through those services provided by a third party.

Conduct risk is an integral part of the way UKAR does business, specifically, the interests of customers and market integrity are at the heart of UKAR's strategy, business and culture. With clear and visible leadership from the Board everyone takes responsibility for good conduct throughout our business model with established controls to deliver fair and appropriate outcomes to our customers, including vulnerable customers.

Our market conduct ensures that UKAR has no impact on market integrity. Annual conduct risk training is included in the colleague mandatory training programme. The Group adopts a proportionate and risk based approach to the appointment and oversight of outsourced service providers based on the nature, scale and complexity of the outsource and deploys a range of policy, governance, reporting, monitoring and assurance activities.

Third Party reports, covering the suitability of design and operating effectiveness of controls, are also utilised to provide an additional level of review and assurance over the Group's mortgage servicing partners.

UKAR are advised of any findings and subsequent action plans to resolve. Operational risk is defined as 'the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events'. The Operational Risk Framework consists of an appropriate suite of policies, standards and procedures to enable effective identification, assessment, monitoring and reporting of key operational risks. The Framework is overseen and reported on by the Risk Function.

In addition, specialists supplement the Framework through the provision of expertise in relation to Financial Crime, Cyber Risk, Business Continuity and Disaster Recovery.

Credit risk is the potential for financial loss caused by a retail or commercial customer, or counterparty, failing to meet their obligations to the Group as they become due. As the Group is no longer making any new retail loans, the absolute level of retail credit risk is expected to decline as the current assets mature.

There is, however, the potential for retail credit risk profile to vary over the medium term as a result of asset sales. Credit risk is the largest risk the Group faces and the monitoring of the recoverability of loans is inherent across most of the Group's activities. The Group employs credit behavioural scoring and fraud detection techniques through their outsourcing partners to support loss minimising strategies.

As no new lending is now being undertaken, the focus of credit risk activities is on:. Adverse changes in the credit quality of borrowers or a general deterioration in UK economic conditions could affect the recoverability and value of the Group's assets and therefore the financial performance of the Group. As credit risk is the main source of risk for the Group, a Credit Risk Framework has been established as part of the overall governance framework to measure, mitigate and manage credit risk within risk appetite.

To a lesser degree, the Group is exposed to other forms of credit risk such as those arising from settlement activities where the risk is a consequence of a transaction, rather than a driver of it. The impact of credit risk on the Group's Balance Sheet is shown by the following table of provisions for mark-downs on impaired assets:.

Equity release mortgages were considered to meet the definition of an insurance contract as the Group had accepted the risk that negative equity may arise on the loans. The provision for the equity release mortgages in the table above reflects the insurance risk, rather than credit risk. The Group's ability to influence the structure of their credit risk profiles, in the absence of asset sales, is largely restricted to the degree of control which they have over risk strategy, loan redemptions and credit collections activity.

Changes in credit quality will arise from changes in the underlying economic environment, assumptions about the future trends in the economy, changes in the specific characteristics of individual loans and the credit risk strategies developed to maintain and enhance the book whilst mitigating credit risk.

Asset sales activity will also have an effect on the overall level of credit risk over the medium term. It is Group policy to monitor the profile of the Group's lending exposure quarterly. Changes in the risk profile are reported as part of the Group's stress tests. The stress tests forecast losses, impairment and capital requirements at a portfolio and product level over a 10 year horizon given a range of economic scenarios.

The Board receives a monthly update on changes in the key drivers of the lending credit risk profile, with more detailed information on the factors underlying these key drivers being reported monthly to the Executive Risk Committee 'ERC'. Credit related policies and limits are developed and maintained within Credit Risk and are reviewed and approved annually by the Board, or when significant changes to policies are recommended. The ERC ensures that any exposure to credit risk remains within overall risk appetite levels as agreed by the Board.

Counterparty credit risk is limited to operational bank accounts and deposits held with approved counterparties in connection with the legacy pension schemes. Credit risk limits apply to all counterparties which reflect their credit rating as well as size, depth and quality of their capital base. The counterparty aspects of credit policies are developed and maintained by our Finance Department and overseen by the Risk Function. Policies are approved by the Board at least annually, or when material changes to policies are recommended.

The UKAR Group considers the primary strategic risks to be external environment, macroeconomic and market stresses, outsourcing, political, regulatory and legal risk, infrastructure, people and Balance Sheet including managing a mortgage book in wind down and project risk. The UKAR Group's focus is on continuous assessment and measurement of movement in strategic risk status in order to ensure continuous monitoring of potential impacts on the annual business and operating plans, and UKAR's overarching strategic objectives.

Thus, close oversight of movements in strategic risk proximity, financial impact, probability is maintained via monthly reporting to the UKAR Executive Committee 'ExCo' and the Board.

Where appropriate, and taking in to account the mainly external nature of strategic risk, risk management strategies can then be defined to mitigate the impact of a risk event arising.

Liquidity risk is the risk of being unable to pay liabilities as they fall due and arises from both the mismatch in asset and liability cash flows and from unforeseen changes to these. The Board's appetite for liquidity risk is low.

Liquidity is managed to ensure there is adequate liquidity to meet commitments at all times and is maintained within agreed HM Treasury facilities, with minimum liquidity levels set out in the Board-approved Liquidity Risk Policy. Customers do not need to take any action and can be assured that there will be no changes to the terms and conditions of any loans as a result of this transaction.

They will continue to receive the same protections for the lifetime of their mortgage as they do today, and their ability to remortgage will be unaffected. Computershare will continue to service the loans. Check what you need to do.

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We now have a dedicated website for Debt Advisors. Northern Rock plc was sold to Virgin Money in NRAM plc core business is now a mortgage servicer and no longer open to new business. The above table details all reportable complaints for Landmark Mortgages Limited for the period 1 January to 30 June , which includes all loans that are now legally owned by Landmark Mortgages Limited. Charges for calling 03 numbers are the same as for calls made to standard UK landline phone numbers starting 01 or 02 and are also included in bundled minutes and unlimited call packages.