Michael McGrath (Cork South Central, Fianna Fail)
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126. To ask the Minister for Finance the number of residential mortgages here that are classified as sub-prime; the number of sub-prime lenders currently operating in the market; the total value of sub-prime mortgages outstanding; the rate of arrears on these mortgages; the actions specific to the sub-prime sector that are being taken to address arrears; and if he will make a statement on the matter. [40652/16]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank has advised me that it is important to note that there is no such regulated category as "sub-prime lender".  However, Retail Credit Firms are authorised to provide credit, in the form of cash loans, directly to individuals (these firms are not licensed to accept deposits).  Some firms authorised in this category are mortgage lenders.  Retail Credit Firms have been subject to regulation by the Central Bank since 1 February 2008.  A register of all Retail Credit Firms is available on the Central Bank website at .  As at 12 December 2016, 18 retail credit firms were subject to regulation by the Central Bank. In light of their activities, Retail Credit Firms are not subject to the same prudential supervisory regime as licensed credit institutions but are subject to the same Consumer Protection framework requirements, including the Central Bank's statutory Consumer Protection Code and the Code of Conduct on Mortgage Arrears ('CCMA').

The Central Bank's Residential Mortgage Arrears and Repossessions Statistics: Q3 2016, which can be viewed at ,  details figures on 'Mortgage Arrears Repossessions and Restructures of Non-Bank Entities' for both PDH and BTL properties.  In this release, the Central Bank further breaks down this group of non-bank entities into "retail credit firms" and "unregulated loan owners".

With respect to actions being taken to address arrears, the Deputy will be aware that the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 introduced a regulatory regime for a new type of entity called a 'credit servicing firm'.  Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'. This ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes, such as the Consumer Protection Code and the Code of Conduct on Mortgage Arrears.

In conclusion, the Government remains committed to working with the Central Bank to ensure that the CCMA and Consumer Protection 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.