Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I thank the Deputy for his question.

The Consumer Protection Code and the Code of Conduct on Mortgage Arrears, CCMA, have in place a number of measures to protect financial consumers. On a general level, regulated lenders are required, in their interaction with their customers, to act honestly, fairly and professionally in the best interests of their customers. Utilising the mortgage arrears resolution process, there is a requirement on the lender to assess each case of mortgage difficulty on its own merits and also to proactively work with the borrower in order to address a case of genuine mortgage difficulty.

If a borrower is dissatisfied with the decision of the lender in this area, the appeals framework as set out in the CCMA will be available. Also, where appropriate, independent financial advice will be available to the borrower under the protocol for independent advice to borrowers availing of long-term mortgage forbearance.

Specific provisions in the CCMA, which are designed to protect borrowers in genuine mortgage difficulty, include that except in the very limited circumstance set out in the CCMA, a lender must not require a borrower, as part of an alternative repayment arrangement, to change from an existing tracker mortgage to another mortgage type; and lenders are restricted from imposing charges and-or surcharge interest on arrears arising on a relevant mortgage in arrears unless the borrower is not co-operating. While it is unfortunate that there are cases of mortgage difficulty and that this gives rise to certain difficulties and costs for the parties involved, it is nevertheless a very welcome development that many parties are in a position to agree and put in place sustainable alternative arrangements in order to address such a difficulty. The latest data from the Central Bank and my Department indicate that an increasing number of mortgage restructures are being put in place in order to deal with mortgage difficulty with almost 115,000 principal dwelling house, PDH, accounts being classified as restructured at the end of December. It is also encouraging to note that 85% of such accounts are deemed to meet the terms of their current restructure arrangement. I would encourage lenders and borrowers in difficulty to continue to build on this and to reach acceptable and sustainable solutions to mortgage difficulty.

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