Bernard Durkan (Kildare North, Fine Gael)
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52. To ask the Minister for Finance the extent to which he remains satisfied that the lending sector continues to facilitate borrowers who have mortgage or other arrears and that arrangements continue to be entered into to facilitate their needs in a way that is sustainable to the borrower and not only to the lender; and if he will make a statement on the matter. [10846/16]

Michael Noonan (Limerick City, Fine Gael)
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This Government is very committed to dealing with mortgage arrears and providing support for borrowers that find themselves in that situation. This is evidenced by the range of commitments contained in the Programme for A Partnership Government which will provide renewed impetus for dealing with the issue particularly for those borrowers in long-term arrears.  

The most recent Central Bank figures show that to date over 120,000 restructures have been put in place which reinforces the fact that engagement between borrowers and lenders works. At end 2015, 86.4% of restructured PDH accounts were deemed to be meeting the terms of their arrangement. In addition the most recent figures published by my Department for end March 2016 show that PDH mortgage accounts in arrears are down 20% since March 2015.

As part of the Mortgage Arrears Resolution Process (MARP) framework the completion of affordability assessments is a key step. 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 borrower's current repayment capacity. In order to determine which options for alternative repayment arrangements are viable in each particular case, a lender must explore all of the options for alternative repayment arrangements that they offer. The Code also requires lenders to review an alternative repayment arrangement at appropriate intervals for the type and duration of the arrangement. The lender must also carry out a review of an alternative repayment arrangement at any time, if requested by the borrower.

The Code of Conduct on Mortgage Arrears (CCMA) is a key part of the Central Bank's mortgage arrears framework. It is designed to provide appropriate and effective consumer protection measures and to ensure that borrowers are treated in a fair and transparent manner. The CCMA sets out requirements for all mortgage lenders dealing with borrowers in arrears or pre-arrears. It provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent way by their lender and that long term resolution is sought by lenders with each of their borrowers.

The CCMA also requires lenders to have an appeals process in place to enable a borrower appeal a decision by a lender, including where the borrower is not willing to enter into an alternative repayment arrangement or where the lender declines to offer an alternative repayment arrangement. The appeals procedure must inform the borrower of his/her right to refer the matter to the Financial Services Ombudsman. The CCMA also provides that, at the borrower's request and with the borrower's written consent, the lender must liaise with a third party to act on his/her behalf in relation to his/her arrears situation.