Pearse Doherty (Donegal, Sinn Fein)
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75. To ask the Minister for Finance the work that has been undertaken to date to give full legal effect to the code of conduct on mortgage arrears; if his Department has undertaken work or analysis of banks’ implementation of the code with respect to alternative repayment arrangements; and if he will make a statement on the matter. [31251/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank Code of Conduct on Mortgage Arrears (CCMA) is the key consumer protection measure for borrowers who are experiencing difficulty in relation to a mortgage which is secured on a primary residence.

This statutory based Code, which is issued by the Central Bank under section 117 of the Central Bank Act 1989, sets out how regulated mortgage creditors must treat borrowers in or facing mortgage arrears. Regulated entities are required to comply with all aspects of the CCMA as a matter of law.

The objective of the CCMA is to ensure that regulated entities have fair and transparent processes in place to deal with their borrowers who or in facing mortgage arrears. Due regard must be given to the fact that each mortgage case is unique and needs to be considered on its own merits. All cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations.

In particular the CCMA provides that, in order to determine which options for alternative repayment arrangements are viable for each particular case, the regulated mortgage creditor must explore all the options for alternative repayment arrangements offered by that creditor.

Furthermore, if a borrower is not satisfied with the decision of the regulated entity in relation to this matter, such as if he or she is not happy with the particular alternative repayment arrangement offered by the mortgage creditor to address the particular mortgage repayment difficulty or if the mortgage creditor declines to offer an alternative repayment arrangement, the CCMA provides that an appeals process be in place to allow for the matter to be reconsidered. That appeals procedure must also inform the borrower of his/her right to refer the matter to the Financial Services and Pensions Ombudsman.

The responsibility for overseeing and enforcing the provisions of the CCMA is an independent matter for the Central Bank and the Bank has the powers available to it for that purpose. The Central Bank has advised that it is currently undertaking intensive supervisory engagement with firms on Long Term Mortgage Arrears (LTMA) to ensure that firms are doing all they can to get borrowers who are engaging meaningfully and paying something towards their mortgage on to an appropriate and sustainable arrangement.

They are also engaging with firms to encourage borrowers that are not currently engaged, to reengage with their firm and it has also advised that firms are being challenged to utilise their full suite of alternative repayment arrangements (ARAs), and look at solutions outside of ARAs, such as Personal Insolvency Arrangements (PIAs) or Mortgage to Rent (MTR).