John Halligan (Waterford, Independent)
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88. To ask the Minister for Finance his plans to legislate where one party to a joint mortgage is not engaging with the bank and making it impossible for the other party to renegotiate manageable terms with the provider, where one party is entitled to be treated as a single borrower from the other party under the 2013 code of protection on mortgage arrears to allow for a long-term restructure; if the restructuring of the mortgage contract without the consent of one party is currently not legislated for and if this needs to be addressed urgently, in particular in a certain case (details supplied); and if he will make a statement on the matter. [20323/16]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy is correct that the Code of Conduct on Mortgage Arrears (CCMA) provides that in the case of joint borrowers who notify the lender in writing that they have separated or divorced, the lender should treat each borrower as a single borrower under this Code (except to the extent that an action requires, as a matter of law, the agreement of both borrowers).

It is also the case, however, that in general both parties to a joint mortgage are jointly and severally liable for the debt.  There would be real difficulties with permitting a mortgage to be restructured to the potential detriment of a party to it, albeit a party who may not be engaging, without their consent.  Such a scenario could potentially give rise to injustice for the person who was not party to the agreement between the bank and the other party.

I am informed by the Central Bank that while the CCMA requires that joint borrowers who are separated or divorced should be treated as single borrowers, the Central Bank is limited in what it can prescribe in this area, particularly where an action requires, as a matter of law, the agreement of both borrowers.  The CCMA requires that all cases must be handled sympathetically and positively by the lender, with the objective of at all times assisting the borrower to meet his/her mortgage obligations.  It is, therefore, desirable that the lender make every effort to engage with both borrowers with a view to arriving at a sustainable restructure outcome that is acceptable to both parties.