Michael McGrath (Cork South Central, Fianna Fail)
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80. To ask the Minister for Finance the Central Bank's role in monitoring the methodology used by bank lenders, non-bank lenders and unregulated lenders to calculate mortgage arrears; the enforcement powers the Central Bank has relating to the miscalculating of mortgage arrears; the steps that the Central Bank has taken regarding the apparent miscalculation of mortgage arrears by (details supplied); and if he will make a statement on the matter. [49838/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank of Ireland (the Central Bank) does not regulate unregulated loan owners. The Central Bank therefore has no role in monitoring the methodology used by unregulated lenders to calculate mortgage arrears. However, the Central Bank is responsible for the regulationof bank lenders and non-bank lenders. This includes the monitoring of regulated entities’, including bank lenders and non-bank lenders, compliance with financial services legislation including the Central Bank’s Statutory Codes of Conduct such as the Consumer Protection Code 2012 (‘the Code’), the Code of Conduct on Mortgage Arrears 2013 (‘the CCMA’), and the Central Bank (Supervision And Enforcement) Act 2013 (Section 48) (Lending To Small And Medium-Sized Enterprises) Regulations 2015 (‘the SME Regulations’). Whilst ‘arrears’ is a term defined for the purpose of the Code, the CCMA and the SME Regulations, the methodology used bybank lenders and non-bank lenders to calculate mortgage arrears is not specifically covered under financial services legislation or the Central Bank’s Statutory Codes of Conduct. However, where issues arise, they are considered in the context of the Central Bank’s regulatory and supervisory framework and are addressed accordingly.

The Administrative Sanctions Procedure, which is applicable to all regulated financial service providers, is the means by which the Central Bank investigates and sanctions breaches of financial services law by regulated firms. Information detailing this and the full range of enforcement powers available to the Central Bank is available on the Central Bank’s website at www.centralbank.ie/consumer-hub/explainers/what-enforcement-powers-does-the-central-bank-have