Bernard Durkan (Kildare North, Fine Gael)
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90. To ask the Minister for Finance his plans to deal with home repossessions by the main lending institutions, their subsidiaries and others in view of the implications for homelessness; his further plans for a new code of conduct for financial institutions to ensure an easing of the regulations in such circumstances; and if he will make a statement on the matter. [23866/17]

Bernard Durkan (Kildare North, Fine Gael)
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91. To ask the Minister for Finance if the lending institutions have indicated to him the extent to which home repossessions are likely in the twelve months from May 2017; if steps will be taken to ensure the retention of the family home in circumstances in which borrowers continue to make payments up to and exceeding one third of the person's disposable income; and if he will make a statement on the matter. [23867/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 90 and 91 together.

The  Government attaches great importance to the resolution of mortgage arrears and wants to keep families in their homes and avoid repossessions insofar as possible.  The Deputy will be aware of the recent establishment of the Abhaile mortgage arrears resolution service to ensure that those either in mortgage arrears or at risk of going into mortgage arrears on their primary residence are able to access State-funded professional legal or financial advice on their resolution options. 

The Deputy will also know 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.  The steps include:

- Making every reasonable effort under the CCMA to agree an alternative restructure arrangement (ARA) with the borrower;

- time bound requirements to inform the borrower the regulated entity is not willing to offer an ARA and of his/her options;

- time bound requirements to inform a borrower, who is not willing to enter into an ARA, of his/her options; and

- Inform the borrower of a decision to classify the borrower as non-cooperating. 

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 Central Bank notes further that  there is strong evidence that both banks and non-banks look to exhaust available restructure options before moving to the legal process.  In addition, the Central Bank considers the range of restructures offered by banks to be broadly appropriate in balancing consumer protection imperatives, and maintaining a mortgage market for all borrowers, and a functioning banking system.

I have no information with respect to the anticipated level of repossessions for the coming year, Court activity levels being a matter which comes under the responsibility of my colleague, the Tánaiste and Minister for Justice & Equality, Frances Fitzgerald TD.  It is important to also note that the commencement of the court process is not a signal that a repossession will occur – it may often be the case that the process then prompts borrowers to re-engage with their bank and to find a solution.  Often these cases are adjourned to allow both parties time to find a sustainable solution.

In conclusion I would draw the Deputy's attention to Mortgage Arrears and Restructures Data released by the Central Bank on 13 March, which shows that to end-Q4 2016, the number of mortgage accounts in arrears for principal dwelling houses (PDH) has declined for the last fourteen quarters.  Almost 121,000 PDH accounts were also classified as restructured, of which some 87 per cent were reported to be meeting the terms of their arrangement.  It is clear that where a borrower actively engages with their lender it is more likely that an equitable arrangement will be found and that the borrower will be able to remain in their family home.