Bernard Durkan (Kildare North, Fine Gael)
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54. To ask the Minister for Finance the degree to which he and his Department continue to monitor the policy of lending institutions that are set to repossess family homes even in instances in which the borrower has over the past number of years continued to make repayments to the extent of up to one third of income; if a protocol can be devised to facilitate such borrowers, in view of the fact that the lending institutions originally facilitated the borrower even when it was obvious that they should not have lent to the extent they did; if the lenders might now be expected to at least accept some responsibility in the issue by way of extending the terms of the mortgages or splitting such mortgages in a way to make it possible for the borrower to meet the demand; and if he will make a statement on the matter. [9995/17]

Michael Noonan (Limerick City, Fine Gael)
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This Government is very committed to  providing support for borrowers in mortgage arrears, as evidenced by the range of commitments contained in the Programme for A Partnership Government and the Action Plan on Housing and Homelessness.  

The most recent Central Bank figures show that to date over 121,000 restructures have been put in place which reinforces the fact that engagement between borrowers and lenders works. At end September 2016, 88 per cent of the total restructured PDH accounts were deemed to be meeting the terms of their arrangement. 

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 of Conduct on Mortgage Arrears (CCMA) also requires lenders to review an alternative repayment arrangement at appropriate intervals for the type and duration of the arrangement.  

The  CCMA is a key part of the Central Bank's mortgage arrears framework.  It is a statutory code issued under Section 117 of the Central Bank Act, 1989 and applies to all regulated mortgage lenders operating in the State when dealing with borrowers facing or in mortgage arrears on their primary residence, including any mortgage lending activities outsourced by these lenders.  Non-compliance with the CCMA is enforceable against regulated entities by the Central Bank. 

The recent Central Bank report on Mortgage Arrears, published on the Department of Finance website on 16 December 2016, found that overall, there is strong evidence that banks and non-banks are looking to exhaust available options before moving into the legal process with regard to mortgage arrears on family homes.  I would therefore urge those with mortgage debt to engage with their lender by completing a standard financial statement of their income and expenditure or contact MABS for independent professional and confidential advice.