Rose Conway-Walsh (Mayo, Sinn Fein)
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220. To ask the Minister for Finance the steps he is taking to ensure mortgage holders, where their mortgage loan is secured against a property affected by defective concrete blocks, are treated fairly and transparently by lenders; and if he will make a statement on the matter. [21563/23]

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 and a scheme of financial support to help affected homeowners has been put in place.

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, arrears on a mortgage secured on a primary residence and it sets out the process that entities must follow in such cases.

The CCMA sets out a standardized Mortgage Arrears Resolution Process that all regulated entities must follow and which entails communicating with borrower, gathering relevant financial information, assessing the borrower’s circumstances and proposing a resolution.

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.

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 in relation to any difficulty which may arise in relation to a mortgage and to provide the information required to enable an assessment of the individual circumstances commence. More generally, the Bank has also informed me that the protection of mortgage loan borrowers is a key priority and that it will continue to supervise compliance by regulated entities with the CCMA.