Bernard Durkan (Kildare North, Fine Gael)
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204. To ask the Minister for Finance the extent to which his Department can monitor the situation affecting those with mortgage arrears with particular reference to the need to ensure that family homes are protected to the greatest extent possible and that borrowers who continue to make payments within their capacity are facilitated into the future; and if he will make a statement on the matter. [27183/16]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that my officials have since August 2013 published monthly returns on mortgage arrears levels in the six main banks representing approximately 90 per cent of the market.  The data clearly shows that the number of accounts with mortgage arrears on primary dwelling homes (PDH) is declining.  Of course the Central Bank quarterly Residential Mortgage Arrears & Restructures data, provides a more comprehensive analysis of the mortgage arrears situation, reporting as it does on the total mortgage market, and confirms the ongoing and continuous decline in the level of accounts in arrears for more than 90 days. More detail on the most recent publication is given below.

The Deputy will also be aware that the Action Plan For Housing and Homelessness sets out how the Government plans to meet the challenging commitments made in the Programme for a Partnership Government in respect of dealing with homelessness, including how it will address the high level of mortgages currently in arrears for more than two years.  Implementation of this plan is being overseen by the Cabinet Committee on Housing and Homelessness. One action on mortgage arrears relates to a commitment to work with the Central Bank to amend the Code of Conduct on Mortgage Arrears to include an obligation on providers of mortgage credit to provide a range of sustainable arrears solutions.I have written to the Governor of the Central Bank in this regard to request that an assessment be undertaken of the range of available sustainable restructure solutions offered by banks and non-bank entities.  I have asked that this assessment should consider in particular how the available options may impact on the distressed borrower's capacity to remain in their primary residence.  The outcome of the assessment will be important in determining next steps in relation to the Action Plan for Housing and Homelessness commitments in respect of the amendment of the Code of Conduct on Mortgage Arrears.

The Central Bank of Ireland's (The Central Bank) Code of Conduct on Mortgage Arrears (CCMA) provides a strong consumer protection framework to ensure that each borrower who is struggling to keep up mortgage repayments is treated in a timely, transparent and fair manner by lenders. The CCMA is a statutory code under section 117 of the Central Bank Act 1989 and can be found at: http://www.centralbank.ie/regulation/processes/consumer-protection-code/Pages/codes-of-conduct.aspx . The CCMA recognises that it is in the interests of borrowers and lenders to address financial difficulties as speedily, effectively and sympathetically as circumstances allow.

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 Central Bank monitors compliance with consumer protection requirements on an ongoing basis through themed inspections, reviews and research, mystery shopping and advertising monitoring and it continues to engage with lenders to ensure compliance with the CCMA.

The Deputy is no doubt aware that the latest Central Bank statistical bulletin, published on 13th September, on residential mortgage arrears presents data to end-June 2016. This release shows the continuing improvement in the level of mortgage accounts with associated arrears, for example, 89 per cent of PDH mortgage accounts have no mortgage arrears.  The number of mortgage accounts for principal dwelling houses (PDH) in arrears continued to fall in Q2 2016, marking the twelfth consecutive quarterly decline.All maturity categories of arrears, including the over 720 days category, declined in Q2.  The 720+ days category recorded a fourth consecutive decline, having fallen for the first time in Q3 2015.120,614 PDH mortgage accounts were classified as restructured at end-June.  Of these restructured accounts 88% were deemed to be meeting the terms of their current restructure arrangement; the highest level since the series began.  

It is very welcome that the numbers in mortgage arrears have continued to decline across the various maturity categories and those in arrears for more than two years have declined for the fourth consecutive quarter.However, there are still large numbers with long-term arrears, despite the various borrower supports that have been put in place.  Therefore, it is important that we now concentrate our efforts to ensure that those who remain in arrears engage with their lender to resolve their difficulties.  I understand that this will be a major focus for the Mortgage Arrears Resolution Service being established on foot of the Action Plan for Housing and Homelessness.