Michael McGrath (Cork South Central, Fianna Fail)
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99. To ask the Minister for Finance the number of residential mortgages here that are classified as sub-prime; the number of sub-prime lenders currently operating in the market; the value of sub prime mortgages outstanding; the rate of arrears on these mortgages; the actions specific to the sub-prime sector which are being taken to address arrears; and if he will make a statement on the matter. [53758/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am informed by the Central Bank that there is no such regulated category as ‘sub-prime lender’.  Retail Credit Firms are authorised to provide credit, in the form of cash loans, directly to individuals (these firms are not licensed to accept deposits).  Some firms authorised in this category are mortgage lenders.  Retail Credit Firms have been subject to regulation by the Central Bank since 1 February 2008.  A register of all Retail Credit Firms is available on the Central Bank website at the following link:

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Retail Credit Firms are subject to the Central Bank’s Consumer Protection framework, including the statutory Consumer Protection Code and the Code of Conduct on Mortgage Arrears (‘CCMA’). 

The sets out requirements for all mortgage lenders, including Retail Credit Firms, dealing with borrowers in arrears or pre-arrears on a mortgage loan which is secured by their  primary residence (as defined).  It provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each of their borrowers.

The Central Bank engages with Retail Credit Firms in relation to their treatment of borrowers under the Mortgage Arrears Resolution Process (MARP), as provided for in the CCMA. The MARP sets out the steps which lenders must follow:

Step 1: Communicate with borrower;

Step 2: Gather financial information;

Step 3: Assess the borrowers circumstances; and

Step 4: Propose a resolution.

The Central Bank monitors the level of short term and long term mortgage arrears and the level of restructures in relation to, inter alia, non-bank entities. The Central Bank’s Residential Mortgage Arrears and Repossessions Statistics detail figures on ‘Residential Mortgages held by Non-Bank Entities’. The latest figures relate to Q2, 2017 and were published on 12 September 2017  This data is available at the following link: