Paul McAuliffe (Dublin North West, Fianna Fail)
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4. To ask the Minister for Finance if his attention has been drawn to the fact that some financial institutions are declining mortgage applications in cases in which applicants are on the temporary wage subsidy scheme, TWSS; if there are measures he can take in relation to the matter; and if he will make a statement on the matter. [16281/20]

Paul McAuliffe (Dublin North West, Fianna Fail)
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I had the pleasure this week of attending the launch of the latest phase of affordable housing with the Minister for Housing, Planning and Local Government, Deputy Darragh O'Brien. It is great for any politician who attends such events to see the pleasure of any young families in being able to purchase their own homes. Unfortunately, however, many young families now have a level of uncertainty concerning their applications to financial institutions and the drawdown of funding because their employer is availing of the TWSS. In his discussions with the banks, has the Minister drawn their attention to this matter? Have the banks given him information about the numbers of people impacted by this issue? Has he outlined to the banks that on the one hand the credit rating of employers that avail of the wage scheme will not be impacted but, on the other, we find that their employees are affected?

Paschal Donohoe (Dublin Central, Fine Gael)
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I absolutely appreciate the concerns many people are experiencing about mortgage applications and drawdowns at a difficult time, and my Department and I are maintaining close contact with the Central Bank and the Banking and Payments Federation Ireland, BPFI, as the lending industry works to address the difficulties Covid-19 is causing for both borrowers and lenders. The Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customer's best interests at all times.

In the context of mortgage applications, lenders continue to process applications and have supports in place to assist customers impacted by Covid-19. If customers have any queries or concerns about the impact of Covid-19 on their mortgage application, they should contact their lender directly or consult the supporting information document on the BPFI's website on the impact of Covid-19. However, subject to the regulatory framework, the decision to grant or refuse an individual application for mortgage credit is a commercial and contractual decision to be made by the regulated bank and it is not appropriate or possible for me to instruct lenders in that regard.

The regulations governing mortgage credit require lenders to make a thorough assessment of the consumer’s creditworthiness. The assessment must take account of factors regarding the consumer's ability to meet his or her obligations and it must be carried out on the basis of information on income and expenses. In regard to all of that, however, I welcome the recent statement from the pillar banks that mortgage applications from people in receipt of TWSS payments will be assessed on a case-by-case basis.

Paul McAuliffe (Dublin North West, Fianna Fail)
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I thank the Minister for his reply. I understand the regulatory framework, but when my constituents, Derek and Sandra, attended my clinic last week and told me about their mortgage application, it was very difficult as a Member to explain to them why we have such a large stake in the ownership of many of these banks and yet they feel they are being treated unfairly. I accept the statement by the banks that there will be no delay, but I fear we are just pushing this process on to the next stage, because the issue my constituents had concerned their ability to draw down a previously approved mortgage. They have not been in any way impacted financially, they continue to receive the same remuneration from their employer and their employer assures them that there is no long-term financial difficulty, yet they are not able to draw down the mortgage. I urge the Minister to press the banks on both these issues.

Pearse Doherty (Donegal, Sinn Fein)
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We need to get a positive approach, particularly where the State has shareholdings in these banks. The TWSS will have to be extended. This will cause other issues for people who have had no reduction in their income, who are not at any risk of losing their jobs and who have paid a substantial deposit, amounting to thousands of euro, which they are going to lose as a result of the approach that has been taken by a number of the banks. The Minister needs to lay down the law as much as he can at that meeting tomorrow. I hope that he can then make a public statement to inform people as to what the approach of each of the banks will be after that meeting.

Paschal Donohoe (Dublin Central, Fine Gael)
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I understand the concerns of Deputy McAuliffe's constituents, Derek and Sandra. I want to be in a position to ensure that if a loan is made available to Derek and Sandra, they will always be in a position to be able to repay that loan without facing additional financial hardship or difficulty. We are all aware of the huge stress and anxiety that can also be caused by the development of debt and by issues relating to mortgage arrears, and I am looking to ensure that a balance is achieved between the granting of mortgages at this point and trying to avoid the difficulties of our very recent past. I reiterate to Deputy McAuliffe my view, which has been echoed by the banks, that this issue should be dealt with on a case-by-case basis.

Deputy Doherty will be well aware that many of the issues he is asking me to act upon are matters for the Central Bank of Ireland and are independent of me as Minister of Finance.

Paul McAuliffe (Dublin North West, Fianna Fail)
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I thank the Minister and I accept his bona fides in this matter. As well as the responsibility that we have, and as someone who purchased a home in 2008, I know all about the issues relating to protecting those people who may not have long-term financial security. We also, however, have to ensure that we have a functioning housing market and that we continue to allow people who can to purchase a home. I thank the Minister and I urge him to maintain the pressure he is placing on the banks, both this afternoon and in the coming days.

Paschal Donohoe (Dublin Central, Fine Gael)
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I completely understand the issue that Deputy has raised. I again recognise the concern that many people have who have not seen their incomes change. The Deputy made a crucial point about citizens moving on to the income support wage subsidy scheme. In many cases, their income has not changed, which is one of the reasons we brought in the scheme. Even though the income has not changed, I am aware of the issue to which the Deputy is referring. I hope that the clarification given by the banks makes progress on that matter. If we do get to the point where the scheme is extended, then of course we need to ensure that an unintentional consequence of that is not the exacerbation of the issue the Deputy has raised.