Written answers
Tuesday, 2 May 2017
Department of Finance
Mortgage Lending
Michael McGrath (Cork South Central, Fianna Fail)
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284. To ask the Minister for Finance the policies in place for banks dealing with circumstances in which persons who are joint mortgage holders separate and the agreement provides for the mortgage to be in one name only; if the Central Bank has put in place a policy for banks to enable the removal of a person from a mortgage in this instance; and if he will make a statement on the matter. [20500/17]
Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Central Bank that in general both parties to a joint mortgage are jointly and severally liable for the debt. The removal of persons from a mortgage agreement is a matter governed by contract law and the Central Bank is therefore limited in what it can prescribe in this area.
If the Deputy has a particular concern in relation to this issue, and wishes to provide me with more information, I would be happy to make the relevant enquiries.
Template to accompany requests to the Central Bank for material for replies to PQs, Topical Interest Debates (TIDs) and any other briefing that, up to now, went to the Press Office in the Bank
It has been agreed with the Central Bank that this template will be used with effect from 24 May 2012.
From that date also, there will be a dedicated email address for requests. Please use instead of the Press email. pqs@centralbank.ie
| - | Name |
|---|---|
| Department of Finance contact(s) | Emma Cunningham Ailish O’Connell Godfrey Craig Frank O’Byrne |
| Contact telephone numbers | 01 6045623 01 6045809 01 6045685 01 6045529 |
| Contact email address | Emma.Cunningham@finance.gov.ie Ailish.OConnell@finance.gov.ie Godfrey.Craig@finance.gov.ie Frank.O’Byrne@finance.gov.ie |
| Deputy submitting PQ or TID | Deputy Michael McGrath TD |
| PQ reference number | 20500/17 |
| Date for answer, priority, written or oral | Written Tuesday 2nd May 2017 |
| Deadline time for reply from the Central Bank | Thursday 27th April 13:00 |
| The PQ or TID details | To ask the Minister for Finance the policies in place for banks dealing with situations in which persons that are joint mortgage holders separate and the agreement provides for the mortgage to be in one name only; if the Central Bank has put in place a policy for banks to enable the removal of a person from a mortgage in this instance; and if he will make a statement on the matter. |
| Draft reply or material for inclusion in reply. This material to be completed in Word in the column opposite to facilitate ‘cut and paste’ in D/Finance | In general both parties to a joint mortgage are jointly and severally liable for the debt. The removal of persons from a mortgage agreement is a matter governed by contract law and the Central Bank is therefore limited in what it can prescribe in this area. In respect of separated borrowers in or facing mortgage arrears on their primary residence, the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) will apply. The CCMA provides that in the case of joint borrowers who notify the lender in writing that they have separated or divorced, the lender should treat each borrower as a single borrower under this Code (except to the extent that an action requires, as a matter of law, the agreement of both borrowers). |
Note
Any other relevant information e.g. in the case of oral questions, material which the Central Bank considers could be used for supplementary questions and for briefing the Minister.
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