Written answers
Thursday, 10 November 2022
Department of Finance
Code of Conduct on Mortgage Arrears
Gerald Nash (Louth, Labour)
Link to this: Individually | In context | Oireachtas source
142. To ask the Minister for Finance the number of mortgage owners currently in short- and long-term arrears, in tabular form; if his Department or the Central Bank will conduct an analysis on the potential impact of rising ECB rates on mortgage arrears; if he is satisfied the 2013 code of conduct on mortgage arrears is adequate to protect customers in the current environment of rising rates; and if he will make a statement on the matter. [55834/22]
Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source
As the Deputy is aware, the Central Bank of Ireland publishes statistics on residential mortgage arrears and repossessions on a quarterly basis in respect of mortgages secured on both principal dwellings and buy to let properties by Central Bank regulated entities. The Central Bank advises that the most recently published data, which is for the quarter ending June 2022, indicates the following:
| Total number of residential mortgage accounts (both primary dwelling and buy to let mortgage accounts) | 802,590 |
|---|---|
| of which:- | |
| in short term arrears (which for the purposes of this table are regarded as accounts in arrears of up to 90 days) | 16,247 |
| in long-term arrears (which for the purposes of this table are regarded as accounts in arrears of over 365 days) | 33,331 |
The Central Bank further advises that, while at this point it has not published a formal analysis of the potential impact of higher interest rates on either repayment amounts or mortgage arrears, work in this area is being conducted as part of the upcoming Financial Stability Review and which it is expected will be published in the coming period.
There is a comprehensive consumer protection framework in place, and which includes the Central Bank Code of Conduct on Mortgage Arrears (CCMA), which seeks to ensure that Central Bank regulated entities are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle. Including through protections at the initial marketing/advertising stage, in assessing the affordability and suitability of the mortgage and at a time when borrowers may find themselves in financial difficulties.
As the Deputy will be aware, in 2018 the Central Bank carried out a review of the CCMA to ensure it remains as effective as possible. Based on a point in time analysis and informed by various strands of work including inspections, data collection, and stakeholder engagement, the Central Bank found that for borrowers who engage with the process, the CCMA was working effectively and as intended.
No comments