Michael McGrath (Cork South Central, Fianna Fail)
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215. To ask the Minister for Finance his plans to expand the mortgage arrears targets resolution programme, to include subprime mortgages; and if he will make a statement on the matter. [6743/15]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank of Ireland has informed me that it is important to note that there is no such regulated category as "sub-prime lender".  However, Retail Credit Firms are authorised to provide credit, in the form of cash loans, directly to individuals (these firms are not licensed to accept deposits).  Some firms authorised in this category are mortgage lenders. 

The Mortgage Arrears Resolution Targets (MART) were introduced in March 2013, 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.  Retail credit firms, which are not authorised to accept deposits, are not subject to the prudential standards set out in the Central Bank's MART. However, the same consumer protection framework applies to retail credit firms as to other regulated lenders including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears (CCMA).  MART targets for 2015 are under consideration by the Central Bank.

The CCMA sets out requirements for all mortgage lenders, including Retail Credit Firms, dealing with borrowers in arrears or pre-arrears on a mortgage loan which is secured by their  primary residence (as defined).  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 borrowers. The full text of the CCMA may be viewed at .  The Central Bank monitors Retail Credit Firms' treatment of borrowers under the CCMA.

A register of all Retail Credit Firms is available on the Central Bank website at the following link: