Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

A Programme for a Partnership Government made a number of commitments in the area of “Protecting & Promoting Tenancy Rights and Home Ownership”. Specifically in respect of the code of conduct on mortgage arrears to which Deputy Doherty refers, there is a commitment to "work with the Central Bank to amend the Code of Conduct on Mortgage Arrears to include an obligation on providers of mortgage credit to provide a range of sustainable arrears solutions". As Deputy Doherty will be aware, in March this year I requested the Central Bank of Ireland to carry out a review of the code of conduct on mortgage arrears, otherwise known as the CCMA, to ensure it remains as effective as possible.

I published a very detailed and comprehensive report last week. In carrying out the review, the Central Bank sought the views of consumer representatives and advocates who are working to assist borrowers in financial difficulty. They engaged with statutory bodies and industry stakeholders. The bank conducted inspections of one retail credit firm, two credit servicing firms that represented 79% of principal dwelling home loans serviced by credit servicing firms, and one bank. Finally, the Central Bank gathered and analysed data relating to arrangements being considered and being put in place by banks and other entities.

As the Deputy can see, the report was specifically examining the treatment of mortgage loans by banks and non-banks to which the Deputy refers. No evidence was found that borrowers whose circumstances have not changed are being moved off existing arrangements by credit servicing firms who act on behalf of so-called unregulated loan owners during the term of the arrangement. Furthermore, there is evidence that such entities are considering more arrangements within their suite of arrangements under the CCMA compared with banks and retail credit firms but the report does observe that banks and retail credit firms are putting in place a more diverse range of such arrangements. It is important to note that retail credit firms and unregulated loan owners account for a significantly higher proportion of accounts in arrears in the 720 days past due category, so this could account for differences in the range of arrangements that unregulated loan owners are putting in place.

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