Andrew Doyle (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

170. To ask the Minister for Finance if he will outline the workings and procedures that Irish banks are using under the Central Bank of Ireland's code of conduct on mortgage arrears; and if he will make a statement on the matter. [25436/13]

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

I have been informed by the Central Bank that the Code of Conduct on Mortgage Arrears (CCMA) is a key part of the Central Bank's mortgage arrears framework. It is designed to provide appropriate and effective consumer protection measures and to ensure that borrowers are treated in a fair and transparent manner. The Central Bank first published the CCMA in February 2009. It set out rules for lenders when dealing with borrowers in arrears with their mortgage payments. The current CCMA, which came into effect on 1 January 2011, took account of the recommendations of the Government Expert Group on Mortgage Arrears and further strengthened protections for borrowers in mortgage repayment difficulty by setting out the mortgage arrears resolution process (MARP).

The MARP is a five-step process which requires lenders to: 1) communicate with borrowers; 2) obtain financial information using a standard financial statement (SFS); 3) complete an assessment of the borrowers case; 4) consider options to resolve the arrears; 5) consider appeals. As per the CCMA, lenders must draw up and implement procedures for dealing with borrowers covered by the CCMA. These procedures must, inter alia, set out how the lender will implement the 5 steps of the MARP. The CCMA along with clarifications that the Central Bank has issued can be found at: .