Mr. Shane O'Sullivan:

Our starting point is certainty. From there we ask whether the mortgage, were we obliged to restructure it, would be sustainable. To us, sustainable means there is a clear path to the repayment of the outstanding capital by the end of the term or an extended term. Thereafter, once one can pass that test, the question is whether the customer is able to afford the monthly repayments between here and there, month in, month out. When one can identify that solution, it will lead one into treatments like the split mortgage or parked capital and interest or whatever it might be. Unfortunately, there are times when no matter what way one considers it, up or down, left or right, that affordability and sustainability is not there. Consequently, the certainty is not there and this leads one to the route of the best outcome for the customer being to work collaboratively to sell the property. This is seen by the Central Bank as a sustainable solution. It might not be the one the customer would prefer but it is a credible solution, given that affordability and sustainability are not there.

In terms of the mechanics of how we arrive at these decisions, the Deputy will understand that all customers will complete a standard financial statement, SFS, form. It is a ten-page or 12-page form that they will complete with a member of our staff in a branch. We have two staff members in each branch who will take customers through the SFS. The SFS form is then validated by a team in Dublin, who will compare it for accuracy and will then pass it to an underwriter. The underwriter will make his or her decision based on the SFS, as well as with the assistance of cash flow projections that enable the underwriter to consider what options are available for the customer in each case. Ultimately, the underwriter will make that decision on affordability and sustainability.