Clare Daly (Dublin North, Socialist Party)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance the administrative costs of the mortgage arrears resolution process; the number of persons that have applied to the scheme; the number that have been approved; and if he will make a statement on the matter. [9425/13]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Mortgage Arrears Resolution Process (MARP) is not a scheme that a borrower applies for, rather it is a framework and process, set out in the Code of Conduct on Mortgage Arrears (CCMA), under which lenders are to engage with a cooperating borrower in arrears or pre-arrears and which requires a lender to consider viable alternative repayment arrangements to address mortgage difficulty. The Central Bank of Ireland has informed me that it does not track the number of borrowers covered under the MARP but does track the number of alternative arrangements put in place across the regulated industry and which is published quarterly by the Central Bank. This is available on the Central Bank’s website, .

Protections offered to borrowers under the CCMA include the following:-

- All cases must be handled sympathetically and positively by the lender;

- A lender must not apply to the courts to commence legal action for repossession until every reasonable effort has been made to agree an alternative repayment arrangement with the borrower;

- Where a borrower co-operates with the lender, the lender must wait at least 12 months from the date the borrower is classified as a MARP case before applying to the courts to commence legal action;

- Each branch, or office of the lender, must have a person responsible for dealing with borrowers in difficulty and must have a dedicated Arrears Support Unit to deal with all MARP cases;

- Lenders are restricted from imposing charges on arrears arising on a mortgage account in arrears where the borrower is co-operating with the lender;

- All communications about arrears and pre-arrears must be provided in a timely, clear and consumer friendly manner e.g. information booklet providing details of MARP and dedicated section on website.

A lender must explore all options for alternative repayment arrangements, when considering a MARP case, in order to determine which options are viable for each particular case. The lender must document its considerations of each option examined and also the reasons why the option offered to the borrower is appropriate for his/her circumstances.

If a lender is not willing to offer a borrower an alternative repayment arrangement, for example, where it is concluded that the borrower can afford the mortgage or where the mortgage is unsustainable, then the reasons for this must be given in writing to the borrower. In these circumstances, the lender must make the borrower aware of certain information including the borrower’s right to make an appeal to the lender’s Appeals Board and include the procedure for making an appeal and the relevant time allowed to the borrower to consider submitting an appeal.

The Deputy may wish to note that borrowers can appeal to the Financial Services Ombudsman (FSO) after the internal appeals process has ended but the FSO will look at the process rather than opine on whether the credit decision made was correct.