Bernard Durkan (Kildare North, Fine Gael)
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82. To ask the Minister for Finance if he will engage with the Central Bank with a view to the introduction of a statutory code of conduct to be operated by lenders and borrowers to give particular recognition to the status of those borrowers that have continued to the best of their ability to make payments in respect of family home mortgages, with a view to minimising the extent of family home repossessions while avoiding moral hazard but reducing the incidents of homelessness arising from the current policies as pursued by some lenders including unregulated third parties; and if he will make a statement on the matter. [16428/17]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the Code of Conduct on Mortgage Arrears (CCMA) sets out statutory requirements for mortgage lenders and credit servicing firms dealing with borrowers in or facing arrears on the mortgage loan secured by their primary residence. Lenders may only commence legal proceedings for repossession of the borrower's primary residence after it follows a number of steps, including making every reasonable effort under the CCMA to agree an alternative restructure arrangement (ARA) with the borrower.

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 Central Bank has the power to administer sanctions for a contravention of the CCMA under Part IIIC of the Central Bank Act 1942.

Last year I wrote to the Governor of the Central Bank to request that an assessment be undertaken of the range of available sustainable restructure solutions offered by banks and non-bank entities. The Central Bank completed its assessment and their report is published on the Department of Finance website. The assessment finds a comprehensive range of available restructuring solutions being offered and delivered by both bank and non-bank entities and notes considerable progress in addressing mortgage arrears since the peak.

The Deputy will also be aware of many other Government initiatives aimed at resolving the mortgage arrears issue, including:

- personal insolvency legislation and the Court review of personal insolvency arrangements (PIAs), which include the primary dwelling, that have been rejected by a majority of creditors;

- overhaul of bankruptcy rules;

- establishment of a mortgage-to-rent scheme;

- making available to indebted borrowers free access to professional advice about mortgage resolution options the Abhaile Scheme.

Finally Mortgage Arrears and Restructures Data released by the Central Bank on 16 March showed that to end-Q4 2016, the number of Principal Dwelling House (PDH) mortgage accounts in arrears has declined for the past fourteen quarters. Almost 121,000 PDH accounts were also classified as restructured, of which 87% were reported to be meeting the terms of their arrangement.