Bernard Durkan (Kildare North, Fine Gael)
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94. To ask the Minister for Finance the extent to which the lending institutions are proceeding on foot of instructions from the Central Bank in the matter of repossession of family homes or buy-to-let properties, the consequences of which will greatly exacerbate the housing problem, thereby illustrating a critical infrastructural weakness in respect of which a specific response might be required; if it is expected that such a response can issue in the short term; and if he will make a statement on the matter. [17758/16]

Bernard Durkan (Kildare North, Fine Gael)
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96. To ask the Minister for Finance the extent to which the Central Bank can encourage the lending institutions to forego repossessions of family homes or buy-to-let properties with particular reference to the need to accommodate borrowers who continue to make every effort to make regular payments; and if he will make a statement on the matter. [17760/16]

Bernard Durkan (Kildare North, Fine Gael)
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97. To ask the Minister for Finance the extent to which the Central Bank is likely to encourage lending agencies to forego repossessions and accommodate borrowers who continue to make regular and maximum affordable repayments, having particular regard to the fact that the lending institutions were themselves the beneficiaries of an ongoing facility by way of bailout; if it is expected that such considerations might be evaluated in the shortest possible time; and if he will make a statement on the matter. [17761/16]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 94, 96 and 97 together.

The Deputy will be aware that regulated lenders are required under the Code of Conduct on Mortgage Arrears (CCMA) to have in place a Mortgage Arrears Resolution Process as a framework for handling cases in mortgage arrears or at risk of falling into arrears.  Under MARP, a lender must examine each case on its individual merits and it must base its assessment on the full circumstances of the borrower, including:

- the personal circumstances of the borrower;

- the overall indebtedness of the borrower;

- the information provided in the standard financial statement;

- the borrower's current repayment capacity; and

- the borrower's previous repayment history.

The Central Bank established mortgage arrears resolution targets (MART) in 2013 for six Irish mortgage credit institutions (ACC Bank plc, Allied Irish Bank plc, The Governor and Company of the Bank of Ireland, KBC Bank Ireland plc, Permanent Tsb plc and Ulster Bank Ireland Limited) with respect to their Republic of Ireland principal dwelling home primary residence (PDH), and buy-to-let (BTL) mortgagees.  All financial institutions subject to MART were required to report progress to the Central Bank regarding their achievement of MART targets, including the concluded sustainable solutions target.At end Q4-2014, the Central Bank reported that lending institutions had met the Central Bank requirements in respect of concluded sustainable solutions. 

The Deputy should also be aware that the Central Bank  published internal sustainability guidelines in 2013, updated in 2014, to guide supervisors in assessing if the modifications provided by lenders are sustainable solutions for mortgage arrears cases. 

In April 2015 the Central Bank determined that relying on common quarterly resolution targets across all banks was no longer appropriate and wrote to each institution setting out new requirements that:

- concluded sustainable solutions are in place for the vast majority of distressed borrowers by the end of 2015;

- they meet the terms being met target of 75 per cent of concluded solutions to the end of 2015 and beyond;

- they continue to comply with the Code of Conduct on Mortgage Arrears;

- where they  take legal action that may result in loss of ownership for a borrower, they should be prepared to re-engage with the borrower and explore alternative solutions if the borrower re-engages; and

- they engage fully and appropriately in the process set out in the Personal Insolvency Act,  2012.

I am informed by the Central Bank that it has always focused on providing a fair and consistent process for the borrower through the CCMA, the Consumer Protection Code 2012, the MART audits and against defined Sustainability Guidelines.

As the Deputy is aware, the CCMA has already been reviewed and updated over time and the Government will work with the Central Bank to ensure that the Code continues to be relevant, fair and balanced in respect of the legitimate interests of debtors and creditors, all the while promoting the availability of sustainable solutions to address genuine mortgage difficulty.

Bernard Durkan (Kildare North, Fine Gael)
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95. To ask the Minister for Finance the extent to which he can address the situation arising from potential large-scale repossession of family homes, directly or indirectly, through the repossession of buy-to-let properties; and if he will make a statement on the matter. [17759/16]

Michael Noonan (Limerick City, Fine Gael)
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The Government attaches great importance to addressing the issue of mortgage arrears. The recently published Central Bank Residential mortgage arrears and repossessions statistical bulletin to the end of the first quarter of 2016 reports that BTL mortgage accounts in arrears for more than 90 days decreased by 3.5 per cent during the quarter and BTL accounts in arrears for more than 720 days declined by 0.9 per cent, marking six consecutive quarterly declines in this cohort of accounts.

The Deputy will also be aware that Landlord-tenant relations are governed by multiple pieces of legislation (mainly under the aegis of my colleague, the Minister for Housing, Planning and Local Government) and the landlord/owner of the property is restricted in what they can do in relation to removal of tenants from a property.  A tenant who is looking for information on their rights or who is unhappy with the way they have been dealt with in relation to the repossession of a property should contact the Residential Tenancies Board (RTB). 

A total of 27,222 BTL mortgages have been restructured up to end March 2016, which shows that where a borrower actively engages with their lender with a view to agreeing a sustainable repayment arrangement to address their mortgage arrears it is more likely that an equitable arrangement will be found, thus avoiding repossession of the property.  I would, therefore, strongly urge all distressed borrowers who have not engaged with their lender for some time, to contact the Money Advice and Budgeting Service (MABS) helpline for confidential and independent expert advice or alternatively, borrowers should contact the arrears support unit of their lender directly.