Michael McGrath (Cork South Central, Fianna Fail)
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99. To ask the Minister for Finance if he will place a clause in the code of conduct for mortgage lenders to require them to charge a reduced interest rate on the warehoused section of a split loan; and if he will make a statement on the matter. [3712/16]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) is a statutory Code issued under Section 117 of the Central Bank Act 1989 and that it applies to all regulated mortgage lenders and credit servicing firms operating in the State when dealing with borrowers facing or in mortgage arrears on their primary residence. 

The completion of affordability assessments is a key step in the Mortgage Arrears Resolution Process (MARP).  In this regard a lender must examine each case on its individual merits and it must base its assessment on the full circumstances of the borrower, including, inter alia, the overall indebtedness of the borrower.

While the CCMA obliges lenders to explore all of the options for alternative repayment arrangements offered by that lender under step 4 of the MARP, it does not oblige lenders to offer and apply a particular set of options nor does it approve the specific options that a lender does offer. 

The Central Bank, including in its role as part of the Single Supervisory Mechanism (SSM), remains focused on providing a fair and consistent process for the borrower through the CCMA, the Mortgage Arrears & Resolution Targets (MART) audits and against defined Sustainability Guidelines. 

The Deputy will also of course be aware that the Central Bank is an independent organisation in the performance of its supervisory role and it would not be appropriate for me to direct it in how it fulfils its regulatory oversight role in respect of financial institutions.