Bernard Durkan (Kildare North, Fine Gael)
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218. To ask the Minister for Finance the extent to which the lending institutions are expected to accommodate by way of extension of mortgage repayment period for borrowers in arrears in respect of their family homes, having particular regard to that fact that all borrowers and all taxpayers have had to contribute to the bailout of the lending institutions; and if he will make a statement on the matter. [16737/17]

Bernard Durkan (Kildare North, Fine Gael)
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222. To ask the Minister for Finance the extent to which he has received communication from the lending institutions with a view to identifying the degree to which family home repossessions are likely to occur throughout the remainder of 2017; if he has in mind particular intentions to lessen the degree to which homelessness can occur as a result; and if he will make a statement on the matter. [16741/17]

Bernard Durkan (Kildare North, Fine Gael)
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223. To ask the Minister for Finance his views on whether a new statutory code of conduct be operated by lenders and borrowers in situations in which the family home is under threat of repossession; his further views on the need to encourage the financial institutions to provide adequate recognition and protection in situations in which the borrowers have continued to meet monthly repayments to the best of their ability; and if he will make a statement on the matter. [16742/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 218, 222 and 223 together.

I am informed by the Central Bank that within the remit of it's responsibilities for safeguarding stability and protecting consumers, its approach to mortgage arrears resolution is focussed on ensuring the fair treatment of borrowers and ensuring that lenders have appropriate arrears resolution strategies and operations in place. The Deputy will be aware that the Code of Conduct on Mortgage Arrears forms part of the Central Bank's Consumer Protection Framework. It is a statutory code and it provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner.

The overriding objective of the CCMA is to ensure the fair and transparent treatment of consumers in mortgage arrears or pre-arrears, and that due regard is had to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits. The CCMA recognises that it is in the interests of borrowers and regulated firms to address financial difficulties as speedily, effectively and sympathetically as circumstances allow. Each regulated entity must consider the borrower's situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA does not prescribe the solution which must be offered. At the end of the mortgage arrears resolution process (MARP), regulated entities are required to provide a three-month notice period to allow co-operating borrowers time to consider their options before legal action can commence. The CCMA includes requirements that arrangements be sustainable and based on a full assessment of the individual circumstances of the borrower and that repossession be used only as a last resort.

As regards potential court proceedings, the Deputy should note that under the CCMA, a regulated entity may only commence legal proceedings for repossession where it has made every reasonable effort to agree an alternative repayment arrangement (ARA) with the borrowers and other clear requirements are met or the borrower has been classified as not co-operating. This framework requires lenders to exhaust the options available from the suite of ARAs offered before taking action which may result in the borrower losing their home (whether by voluntary sale or repossession). During the legal process, borrowers have opportunities to re-engage with lenders to find a solution. 

In conclusion, I would refer the Deputy to the Central Bank's Mortgage Arrears Report, published on my Department's website at www.finance.gov.ie/what-we-do/banking-financial-services/publications/reports-research/report-mortgage-arrears-2016, in which the Central Bank stated that 'Overall, there is strong evidence that banks and non-banks are looking to exhaust available options before moving into the legal process'. The Deputy will be aware of the Abhaile scheme, launched by the Tánaiste and Minister for Justice & Equality and the Minister for Social Protection, which offers indebted borrowers access to State-funded legal and/or financial advice to help them identify how best to address their mortgage arrears, including considering if a personal insolvency arrangement would suit their circumstances. I understand that there is strong take-up of this scheme by borrowers. It is clear that where borrowers actively engage with their lender and seek advice they are more likely to find a solution that will enable them to remain in their home.