Bernard Durkan (Kildare North, Fine Gael)
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27. To ask the Minister for Finance if he is satisfied that the lending institutions are compliant with a code of conduct in respect of mortgage arrears that recognises the efforts made by borrowers that continue to make payments within their capacity now and over the period since the economic crash; if this is reflected in the manner in which they deal with customers, many of whom continue to make huge sacrifices to make repayments; his views on whether it is time to introduce specific guidelines governing the repossession of the family home in circumstances in which lending institutions tend to resort to measures more protective of their own interests often with tragic consequences; and if he will make a statement on the matter. [44727/17]

Paschal Donohoe (Dublin Central, 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. 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

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

Lenders must ensure that the case of each borrower is individually assessed on its merits to ensure fairness. The Mortgage Arrears Resolution Process (MARP) framework sets out the steps which lenders must follow. A lender must carry out an affordability assessment by examining each case on its own merits and must base its assessment of the borrower's full circumstances including their ability to repay as determined by up to date information on a Standard Financial Statement (SFS). A lender must explore all options for alternative repayment arrangements (that they offer) in order to offer the most viable option to each borrower. The Code also requires lenders to review an alternative repayment arrangement at appropriate intervals for the type and duration of the arrangement. The lender is also obliged to carry out a review of an alternative repayment arrangement at any time, if requested by the borrower.

I am informed by the Central Bank that there is a broad range of available restructures offered and delivered by both bank and non-bank entities and there is strong evidence that both banks and non-banks look to exhaust available restructure options before moving to the legal process.

I would like to draw the Deputy's attention to the Mortgage Arrears and Restructures Data released by the Central Bank on 12 September, which shows that to end-Q2 2017, the number of mortgage accounts in arrears for principal dwelling houses (PDH) has declined for the last sixteen consecutive quarters. 120,398 PDH accounts were also classified as restructured, of which 87% were reported to be meeting the terms of their arrangement. A total of 340 Primary Dwelling Home properties were taken into possession during Q2 2017, down from 370 properties in Q1 2017. Of the properties taken into possession during the quarter, 109 were repossessed on foot of a Court Order, while the remaining 231 were voluntarily surrendered or abandoned.

The Deputy may also be aware of the Abhaile mortgage arrears resolution service, established 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 aim of Abhaile is to help mortgage holders in arrears to find the best solutions and keep them, wherever possible, in their own homes. The service is proving very successful in assisting distressed borrowers, particularly those in longer term mortgage arrears. A dedicated adviser will work with borrowers in mortgage arrears and their lender to find the best solution for their situation.

If those in mortgage arrears need financial advice, they can get a free face to face meeting with an expert financial adviser. The adviser can help them to work through their financial situation and explain the options available to them to help deal with their home mortgage arrears. The expert adviser could be a MABS Money Adviser, a MABS Dedicated Mortgage Arrears adviser, a Personal Insolvency Practitioner (PIP) or an accountant.

Distressed borrowers may also need legal advice on issues related to their mortgage arrears. Under Abhaile they can have a free face-to-face meeting with a solicitor, who will explain their legal situation and advise them how best to resolve it.

If they are called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. The Duty Solicitor may be able to speak for them in court and explain the proceedings to them.

A MABS staff member will also be present at court to help them.

A Helpline is also available Monday to Friday, and a face-to-face service which is completely free, confidential and independent is also available in more than 60 locations nationwide.

It is worth mentioning as has been done here many times before that where a borrower actively engages with their lender it is more likely that an equitable arrangement will be to try to assist the borrower to remain in their family home. I would therefore urge borrowers in arrears, who have not already done so, to contact their lender or MABS for an independent assessment of their situation and professional advice on available resolution options.