Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

36. To ask the Minister for Finance further to Parliamentary Question No. 196 of 21 January 2014, if sub-prime mortgages are subject to mortgage arrears resolution targets process which will require the institutions to have made offers of sustainable solutions to 75% of distressed borrowers by June of this year and concluded solutions in the 35% of cases; and if he will make a statement on the matter. [4675/14]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

37. To ask the Minister for Finance further to Parliamentary Question No. 196 of 21 January 2014, the number of sub-prime mortgages that have been restructured; and if he will make a statement on the matter. [4676/14]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

45. To ask the Minister for Finance further to Parliamentary Question No. 196 of 21 January 2014, the number of orders for repossession granted to subprime lenders in 2012 and 2013; the proportion this represents of all repossessions; and if he will make a statement on the matter. [4760/14]

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

I propose to take Questions Nos. 36, 37 and 45 together.

According to the Central Bank of Ireland, the Mortgage Arrears Resolution Targets (MART) were introduced, as a prudential policy measure, to set progressively more demanding quantitative targets for specified Credit Institutions to process mortgage arrears cases and achieve sustainable outcomes.

 The specified Credit Institutions to which the MART applies are:

- ACC;

- AIB;

- Bank of Ireland;

- KBC Bank Ireland;

- Permanent tsb;

- Ulster Bank.

The targets are set in relation to both Principal Dwelling Homes (PDH) and Buy to Let (BTL) mortgages and the above named institutions cover the vast majority of the mortgage book in Ireland, accounting for nine out of ten mortgages.

Retail credit lenders, which are not licensed to accept deposits such as sub-prime mortgage providers are not subject to the prudential standards set out in the MART. However, the same consumer protection framework applies to retail credit lenders as to other regulated lenders including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears ( CCMA ) and the Central Bank engages with these firms in relation to their treatment of borrowers under the mortgage arrears resolution process. In particular, the CCMA sets out requirements for all mortgage lenders, including retail credit firms, dealing with borrowers in arrears or pre-arrears on a mortgage secured on a primary home.  It provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each of their co-operating borrowers.

The Central Bank has advised that for the sub-prime category of lender, there are 17,807 PDH accounts of which 4,341 have been restructured.  In addition, out of the 659 BTL mortgage accounts, the Central Bank has advised that 68 have been restructured.

The Central Bank has informed me that the number of orders of repossession for this category is not available at the moment but I will send this data to the Deputy as soon as it becomes available.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

38. To ask the Minister for Finance the number of Irish Bank Resolution Corporation residential and buy to let mortgages that have been restructured; the type of restructure by number; and if he will make a statement on the matter. [4677/14]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

39. To ask the Minister for Finance the reason the Irish Bank Resolution Corporation are not subject to the mortgage arrears resolution targets process; his plans to make them subject to MART; and if he will make a statement on the matter. [4678/14]

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

I propose to take Questions Nos. 38 and 39 together.

I have been advised by the Special Liquidators that Irish Bank Resolution Corporation Limited (in Special Liquidation) was not one of the Specified Credit Institutions as set out in the Mortgage Arrears Resolution Targets ( MART ) published by the Central Bank of Ireland in March 2013.  At the time the MART were published in March 2013 Irish Bank Resolution Corporation Limited was in Special Liquidation.

Irish Bank Resolution Corporation Limited (in Special Liquidation) has agreed specific targets with the CBI for Mortgage Arrears Resolutions however they do not have the same obligations as the Specified Credit Institutions to make public disclosure of their performance against the targets.  The Special Liquidators will therefore not be disclosing the requested information.

I have been informed by the Special Liquidators that the residential mortgage customers of Irish Bank Resolution Corporation Limited (in Special Liquidation) continue to enjoy the protection of the Central Bank Code of Conduct on mortgage arrears and other protections in Irish consumer law.