Matt Carthy (Cavan-Monaghan, Sinn Fein)
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77. To ask the Minister for Finance his views on the requirements of third parties and funds in possession of mortgage contracts with regards to the code of conduct on mortgage arrears; and his views regarding the refusal of third parties and funds to engage with borrowers, including with respect to alternative repayment arrangements under the mortgage arrears resolution process. [3095/23]

Pearse Doherty (Donegal, Sinn Fein)
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We have touched on this issue previously. The question relates to the cohort of around 114,000 individuals who have mortgages with the vulture funds. The issue is the code of conduct on mortgage arrears. The Minister gave me an answer last week suggesting that they could look at alternatives or could move to a different mortgage provider but these people have no alternative. These vulture funds do not offer fixed rates or split mortgages or go through the waterfall of restructuring options, which means these people only have one option. When they get a letter from the funds - and many have received four letters over the past six months - they have nobody to talk to. The code of conduct on mortgage arrears is useless to these people. We cannot allow this situation to fester. We are talking about 114,000 people and I am asking for Government intervention to support them.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy. Many of these individuals have been in touch with me directly as well and a number of Oireachtas colleagues have raised this issue with me. It is an issue of which I am very conscious. I recognise that the rate that many of these mortgage holders would have been on prior to the changes in the ECB interest rate would have been 4% or 4.5% but all of the ECB increases have been passed on in full. That has brought many of them to rates that are at, approaching, or above 7%. That has made life really difficult for many of these people.

I had my first meeting today with the Governor of the Central Bank and I raised this issue with him directly. My Department has also written to the Central Bank in relation to its supervisory and consumer protection functions, drawing its attention to this issue and the impact that interest rates of this kind will potentially have on many of these people. I understand that the Governor will appear before the Oireachtas Joint Committee on Finance tomorrow and I am sure Deputy Doherty and other colleagues will be raising this specific issue with him.

Many of these customers cannot switch their mortgage provider. That said, the point should be made that there may well be some people whose mortgages are no longer classified as non-performing exposure mortgages and who potentially could go back to the mainstream bank lenders. That may be an option for some of these people but I acknowledge that it is not an option for all of them. It is an issue of concern which is why I raised it directly with the Governor of the Central Bank and why my Department wrote to the Central Bank bringing this matter to its attention and asking it to consider what can be done within the suite of supervisory and consumer protection powers of the bank.

Pearse Doherty (Donegal, Sinn Fein)
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A person of whom I am aware is paying €400 a month more. That is €4,800 to the vulture fund. The code of conduct states that where a borrower is experiencing repayment difficulty, a regulated entity must explore all the options for alternative repayment arrangements offered by the entity. There are no options in this case. The vulture fund offers no options. The Government committed to review the CCMA but, two years on, it has not done so. It is not acceptable to leave these people high and dry. We need action. On this side of the House, I am willing to work with the Minister in whatever way is needed to ensure adequate protections are in place for these mortgage holders.

Michael McGrath (Cork South Central, Fianna Fail)
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I have put on the record my concern for these customers. I recognise that interest rates at that level can cause real problems for these borrowers, some of whom are already in arrears, while others have cleared and come out of arrears. It is very challenging for them. I acknowledge that point. That is why, as a new Minister for Finance, I have raised it directly with the Central Bank to examine what can be done within the suite of powers it has. I look forward to engaging further with it on the matter.