Brian Hayes (Dublin South West, Fine Gael)
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Question 171: To ask the Minister for Finance the steps already undertaken to protect mortgage holders in banks participating in the guarantee scheme as set out in Building Ireland's Smart Economy - A Framework for Sustainable Economic Renewal 2009 to 2014 in relation to areas (details supplied); and if he will make a statement on the matter. [17600/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A number of steps have been taken in the areas the Deputy refers to since the publication of the Framework document in December 2008. The Financial Regulator published its Code of Conduct on Mortgage Arrears on 13 February 2009 in keeping with the Government's announcement on recapitalisation. The new mandatory Code builds on the existing voluntary Code of Practice issued by the Irish Banking Federation and incorporates a requirement for the lender to wait at least six months from the time arrears arise before taking legal action. The two recapitalised banks, Bank of Ireland and AIB, have each committed that they will not commence court proceedings for repossession of a principal private residence until after twelve months of arrears appearing, where the customer continues to cooperate reasonable and honestly with the bank. Under the Code of Conduct, a lender may not seek repossession until every reasonable effort has been made to agree an alternative repayment schedule with the borrower. The Financial Regulator's Code will strengthen consumer protection by putting the Code on a statutory footing thus requiring all mortgage lenders, including sub-prime lenders, to comply with its provisions.

As the Deputy is aware, the Government funds the Money Advice Budgeting Service (MABS) which provides valuable help to those in difficulty. A new debt protocol agreement to be finalised shortly with MABS and the Irish Bankers Federation will provide added reassurance for borrowers with the most difficult issues. I am in regular contact with the Financial Regulator on all matters relating to banking and I am assured that those institutions covered under the Government's Bank Guarantee Scheme are monitored for compliance with the Code of Conduct.