Michael McGrath (Cork South Central, Fianna Fail)
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179. To ask the Minister for Finance the number of staff in each of the State supported banks that have received specific training for dealing with customers in mortgage arrears; and if he will make a statement on the matter. [32689/14]

Michael Noonan (Limerick City, Fine Gael)
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I can confirm for the Deputy that I have received the following information from the banks.

1) Allied Irish Banks

AIB can confirm that c. 1,100 staff across the organisation have received specialist training in relation to the Mortgage Arrears Resolution Process. Of these c. 300 staff work in a dedicated Arrears Support Unit trained to deal specifically with customers in mortgage arrears.

2) Permanent TSB

"The Asset Management Unit of Permanent tsb has primary responsibility for dealing with customers in arrears.  292 staff who currently work within the Asset Management Unit of Permanent tsb have all undertaken dedicated and bespoke training on dealing with customers in arrears ".

Bank of Ireland had provided the following information in connection to a previous Parliamentary Question on this topic:

Circa 650 individual staff members dealing with customers in mortgage arrears have completed intensive training programmes across the Bank of Ireland Group. Over 2,000 further staff members across the Group have completed mortgage arrears related training.

Michael McGrath (Cork South Central, Fianna Fail)
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180. To ask the Minister for Finance the number of residential mortgages that have been subject to more than one restructuring arrangement; and if he will make a statement on the matter. [32690/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has advised that it does not publish the number of residential mortgages that have been subject to more than one restructuring arrangement. However, I understand that many restructures are proposed on a trial basis during which the payment capability of the borrower is tested before the offer counts as a permanent restructure.

As statutory regulator of credit institutions, the Central Bank has the power to require banks to meaningfully address mortgage arrears cases on their books.  As the Deputy is aware, the Central Bank has set specific targets, which the six main banks are required to meet on a quarterly basis, in terms of offering and concluding sustainable solutions for those in mortgage arrears of greater than 90 days. The Central Bank's latest 'Residential Mortgage Arrears and Repossessions Statistics' publication for the end of Q1 2014 (), shows that 92,442 principal dwelling houses (PDH) mortgage accounts were categorised as restructured at the end of March 2014, an increase of 10 per cent from the stock of restructured accounts reported at the of December 2013.

The monthly mortgage restructures and arrears data for the six main lenders (about 90% of the market) published by my Department also provides an impetus for those MART banks to increase the pace of provision of mortgage restructures.  The latest publication, in respect of the end of May, shows that some progress has been made in putting permanent mortgage restructures in place.  For example, the total number of permanent restructures of principal dwelling houses (PDH) mortgages has risen from around 51,000 in December to over 69,000 in May 2014. 

This data, as well as the Central Bank quarterly mortgage arrears publications, would appear to demonstrate some success by the lenders in addressing the accounts in arrears as well as measures to prevent borrowers from going into arrears.  Taken together, the framework is in place to enable banks to work with distressed homeowners to reach sustainable solutions for dealing with their personal indebted situations.  However, early and effective engagement between borrowers and lenders is key to resolving the cases of mortgage difficulty.  Where there is effective and meaningful engagement by all parties regarding a mortgage difficulty, the data shows that an increasing number of durable long term mortgage restructures is being put in place.

Michael McGrath (Cork South Central, Fianna Fail)
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181. To ask the Minister for Finance his views on the manner in which banks not covered by the mortgage arrears resolution targets are dealing with the problem of mortgage arrears; and if he will make a statement on the matter. [32691/14]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank's Mortgage Arrears Resolution Targets (MART) process, as announced in March 2013, sets time bound and measurable targets for the six main banks requiring them to systematically address their arrears book.  Under this rolling process, quarterly performance targets have been set to require the banks to propose and put in place durable long term solutions to address individual cases of mortgages in difficulty where the mortgage is more than 90 days in arrears.  The Central Bank has advised that those institutions covered by the MART cover the vast majority of the principal dwelling houses (PDH) and buy-to-let (BTL) mortgage book in Ireland, accounting for 9 out of 10 mortgages held.

The Central Bank's Code of Conduct on Mortgage Arrears (CCMA) applies to the mortgage lending activities of all regulated entities, except credit unions, operating in the State, and consequently not just to those banks covered by the Mortgage Arrears Resolution Targets.  The CCMA sets out requirements for all mortgage lenders dealing with borrowers in arrears or pre-arrears on a mortgage loan which is secured by their primary residence.  The CCMA 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.  This framework is referred to as the Mortgage Arrears Resolution Process (MARP) which sets set out the following steps which lenders must follow:

Step 1: Communicate with borrower;

Step 2: Gather financial information;

Step 3: Assess the borrower's circumstances; and

Step 4: Propose a resolution.

Under the CCMA, if a borrower is not satisfied with the way that their lender is dealing with them or if they think the lender is not complying with the CCMA, the borrower can make a complaint to his lender. Borrowers also have the right to appeal to the lender's Appeals Board if they are not happy with the alternative repayment arrangement offered or where a lender declines to offer an alternative repayment arrangement or if they believe they have been wrongly classified as not co-operating.  If the borrower is still unhappy with the outcome of the appeal, or the complaint made to the lender, they can refer the matter to the Financial Services Ombudsman.

The Central Bank's latest 'Residential Mortgage Arrears and Repossessions Statistics' publication for the end of Q1 2014 (), shows that the number of mortgage accounts for PDH in arrears, fell for the third consecutive quarter.  A total of 132,217 PDH accounts were in arrears at end March 2014 which is a decline of 3.2 per cent relative to end Q4 2013.  The publication also shows that a total of 29,801 new restructure arrangements were agreed during the first quarter of 2014 which reflects a 25.3 per cent increase on the number of new arrangements agreed during the previous quarter. 

Early and effective engagement between borrowers and lenders is key to resolving the cases of mortgage difficulty.  Where there is effective and meaningful engagement by all parties regarding a mortgage difficulty, the data shows that an increasing number of durable long term mortgage restructures is being put in place.  However, it is accepted that it will be necessary for lenders and borrowers to continue to build on this.