Terence Flanagan (Dublin North East, Independent)
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121. To ask the Minister for Finance if the relationship framework with banks prevents him or the Central Bank from giving a direction to ensure that a full suite of standardised mortgage resolution measures are offered by all banks; and if he will make a statement on the matter. [16344/14]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks or their management decisions regarding commercial matters. This includes giving any direction with respect to particular products offered by these banks.

I have also been informed that the Central Bank does not direct the banks which products it should offer customers either.

Having said that a sustainable solution has been broadly defined in the Central Bank's published MART document as one of the following:

"a) An arrangement concluded under a bank's MARP in accordance with the CCMA, where the borrower is cooperating under the MARP and the bank has satisfied itself that the arrangement provides a sustainable solution which is likely to enable the customer to meet the original or, as appropriate, the amended terms of the mortgage over the full remaining life of the mortgage, including repayment of the original or an agreed revised principal sum where offered. This may include an interest only or other temporary solution for a period if it is likely that full repayment of the original or revised principal will be achieved over time, or where there is a payment plan to return the account to sustainability through the clearance of arrears.

b) A personal insolvency arrangement effected under the Personal Insolvency Act 2012; or

c) If an arrangement could not be reached or is not appropriate, that the PDH and BTL property securing the loan has been voluntarily sold or, failing that, any situation where a Specified Credit Institution takes possession of the property including by way of voluntary agreement with the borrower or by Court Order or otherwise".

A range of sustainable solutions have been utilised by each of the lenders to date. These include, but are not limited to, the following:

- Term Extensions

- Split Mortgages

- Permanent Interest Rate Reductions

- Voluntary surrender solutions

Terence Flanagan (Dublin North East, Independent)
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123. To ask the Minister for Finance if his attention has been drawn to statistics per lender to indicate the number of lenders that have accepted the mediation process offered by the Financial Services Ombudsman when agreed by customers in mortgage arrears; and if he will make a statement on the matter. [16346/14]

Michael Noonan (Limerick City, Fine Gael)
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Firstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions.  It would not be appropriate for me to comment on how he performs his duties.

I have been advised by the Financial Services Ombudsman that in respect of all cases the Financial Services Ombudsman s Bureau offers mediation to the Complainant and the Provider.

On the issue more generally, both parties to the complaint must be willing and elect to participate in mediation before mediation can take place. If one of the parties wants to mediate the complaint and the other does not, then no mediation will take place and the matter will proceed to investigation and adjudication.

In 2013 no mediations took place in relation to Mortgage Arrears.