Michael McGrath (Cork South Central, Fianna Fail)
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74. To ask the Minister for Finance the number of private residential and buy-to-let mortgages in the non-deposit-taking, retail credit sub-prime sector; the level of arrears on these mortgages; and if he will make a statement on the matter. [6521/15]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has advised that there is no such regulated category as 'sub-prime' lender but that phrase is sometimes used to refer to some non-deposit taking 'retail credit firms'. Retail credit firms are a regulated category of entities which are authorised to provide credit (in the form of cash loans) directly to individuals. Some firms authorised in this category are mortgage lenders. Retail credit firms have been subject to regulation by the Central Bank since 1 February 2008. A register of all Retail Credit Firms is available on the Central Bank website.

The Central Bank has further advised me that non-bank lenders, including regulated and non-regulated firms, accounted for 5.2 per cent of the total stock of residential mortgage accounts outstanding at end-September 2014 (5.4 per cent in value terms). A total of 18,064 mortgage accounts issued by these lenders were in arrears of more than 90 days at end-September this figure accounted for 15.5 per cent of total mortgages in arrears over 90 days. The outstanding balance on these accounts was €3.8 billion, equivalent to 53 per cent of the total outstanding balance on all mortgage accounts issued by non-bank lenders.

The Central Bank continues to engage with all mortgage lenders, including retail credit firms, in relation to lenders' mortgage arrears resolution strategies and approaches to dealing with borrowers in or facing arrears.  Early and effective engagement between borrowers and lenders is key to resolving cases of mortgage difficulty.  Where there is effective and meaningful engagement regarding a mortgage difficulty, the data shows that an increasing number of durable long term mortgage restructures is being put in place.