Michael McGrath (Cork South Central, Fianna Fail)
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20. To ask the Minister for Finance his plans to tackle the deteriorating situation in relation to sub-prime mortgages; and if he will make a statement on the matter. [13052/15]

Michael Noonan (Limerick City, Fine Gael)
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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.  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.

In light of their activities, Retail Credit Firms are not subject to the same prudential supervisory regime as licensed credit institutions; however, the same consumer protection framework applies to Retail Credit Firms as to all other regulated lenders, ( i.e. Irish licensed banks or banks providing services into Ireland on a cross border/branch basis) including the Central Bank's statutory Consumer Protection Code (the Code) and the Code of Conduct on Mortgage Arrears ('CCMA'). Retail Credit Firms are subject to the same consumer protection supervision under the Code and CCMA as other lenders and as such are required to work in a sympathetic and proactive manner with a borrower to address a mortgage arrears situation and to explore all the options for an alternative repayment arrangement offered by that lender.

The provisions of the Land and Conveyancing Law Reform Act 2013 and the insolvency frameworks set out in the Personal Insolvency Act 2012 will apply to mortgage credit extended by Retail Credit Firms.

Mortgage Arrears is, however, an area that remains under continuous review.  More and concerted action can be undertaken by the banks to assist customers in arrears and, as the Taoiseach has previously announced, my Department is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions.