Clare Daly (Dublin Fingal, Independent)
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73. To ask the Minister for Finance the action he plans to take with a bank (details supplied) that has stated its intention to ignore the Central Bank Code of Conduct in relation to mortgages; and if he will make a statement on the matter. [8837/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Code of Conduct on Mortgage Arrears (CCMA) forms part of the Central Bank’s Consumer Protection Framework.  It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013.  The CCMA provides a strong consumer protection framework, requiring relevant firms to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner and that due regard is had to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits.  The CCMA recognises that it is in the interests of borrowers and regulated firms to address financial difficulties as speedily, effectively and sympathetically as circumstances allow. 

As the CCMA is a statutory code issued under Section 117 of the Central Bank Act 1989, it must be complied with by all regulated entities as a matter of law.  The Central Bank can take action against a regulated entity which does not comply with the CCMA (for example by imposing a direction on such entity or taking enforcement action under the Central Bank’s Administrative Sanctions Procedure).

The voluntary Code of Practice on the Transfer of Mortgages (the Code of Practice) was issued by the Central Bank of Ireland in 1991 to institutions involved in mortgage credit. It may be applied on a voluntary basis by any institution involved in mortgage credit.  The Code of Practice applies to a loan secured by the mortgage of a residential property.  For the purposes of this Code of Practice, a residential property is not limited to a principal private residence. 

I have been advised by the Central Bank of Ireland that although this Code of Practice remains in place, it is a voluntary code which does not have a legislative basis and is therefore not subject to the Central Bank of Ireland’s administrative sanctions process.