Pádraig Mac Lochlainn (Donegal, Sinn Fein)
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253. To ask the Minister for Finance what efforts he and his predecessor, Minister Donohoe, have made recently to ensure that banks and financial institutions provide reasonable support and assistance to their mortgage-holders who will have to have their homes remediated due to defective concrete blocks. [3244/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I understand the difficult situation faced by homeowners whose houses are affected by defective concrete blocks.

The Government response to the MICA issue is led by my colleague the Minister for Housing, Local Government and Heritage, who has put in place a scheme of financial support to help affected homeowners.

In terms of financial institutions who provide mortgages to help people buy or build their own home, as the Deputy is aware, the Central Bank is responsible for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements. Through its consumer protection role, the Central Bank sets out requirements in its codes of conduct which detail how regulated firms such as banks should deal with and treat their customers.

In particular, the Code of Conduct on Mortgage Arrears 2013 (CCMA) places a requirement on regulated entities to have fair and transparent processes in place to deal with borrowers in, or facing, mortgage arrears and it sets out the process that entities must follow when a borrower is experiencing repayment difficulty. Due regard must be given to the fact that each 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 the case of a repayment difficulty entities must explore all of the options for alternative repayment arrangements (ARAs) offered in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances. The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating.

However, the Central Bank does not have remit over the commercial decisions of the entities it regulates and the nature of the particular support it provides to its customers in any particular case is a matter for that financial institution.

Nevertheless, the Central Bank has stated that it encourages borrowers to engage as early as possible with their lenders and to provide the information required to enable an assessment of the individual circumstances commence.

Further that Bank has also informed me that the protection of mortgage loan borrowers, including those in arrears, is a key priority and that it will continue to supervise compliance by regulated entities with the CCMA and will investigate any issues that arise, including patterns of behaviour which suggest that the CCMA process is not being followed.