Bernard Durkan (Kildare North, Fine Gael)
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142. To ask the Minister for Finance the extent to which finance investment companies are currently in engaged in the repossession of family homes, the mortgages for which they acquired at a reduced price and are now continuing to enforce the collection of the entire original mortgage or debt inclusive of interest arrears; and if he will make a statement on the matter. [43841/24]

Jack Chambers (Dublin West, Fianna Fail)
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I can inform the Deputy that the Central Bank of Ireland publishes quarterly mortgage arrears statistics on its website that provide detailed information on the volume and status of mortgage accounts in arrears. The latest statistics published by the Central Bank relate to the mortgage arrears position as at June 2024.

These statistics show that the number of principal dwelling house (PDH) accounts in arrears over 90 days was 28,197 at end June 2024. This figure represents 4 per cent of all PDH accounts, the lowest proportion of mortgage accounts in such arrears since Q4 2009.

At end-June, 17,646 PDH accounts (2.5 per cent of total accounts outstanding) were in early arrears (less than 90 days), down from 18,851 at end-March 2024 (2.7 per cent of total).

In June 2024, 39 per cent of PDH accounts in arrears were held by banks and 61 per cent were held by non-bank entities. By way of comparison, in June 2023, 45 per cent were held by banks and the remaining 55 per cent were held by non-banks.

The majority of accounts in mortgage arrears of any length (45,843) are not currently subject to legal proceedings. No formal demand had been issued in respect of 31,235 PDH mortgage accounts in arrears (68 per cent) at end June 2024. A further 5,049 accounts (11 per cent) were at the formal demand issued stage, but legal proceedings had not yet commenced. A further 4,977 PDH accounts (11 per cent) currently have legal proceedings in process; this includes cases at Civil Bill lodgement stage and where the case is still active before the courts.

During the second quarter of 2024, a total of 32 PDH properties were taken into possession by lenders. As a result, lenders were in possession of 149 properties at end of Q2 2024. 101 of these properties in possession were held by non-bank entities with the remaining 48 held by banks.

The Code of Conduct on Mortgage Arrears (CCMA) forms part of the Central Bank’s consumer protection framework and is a key part of the Central Bank’s mortgage arrears framework. Each regulated entity, be that a bank, retail credit firm (RCF) or credit servicing firm (CSF), must consider the borrower’s situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA does not prescribe the solution which must be offered.

Provision 56 of the CCMA provides that a regulated entity may only commence legal proceedings for repossession of a borrower’s primary residence where the regulated entity has made every reasonable effort under the CCMA to agree an alternative repayment arrangement with the borrower or his/her nominated representative.

The CCMA must be complied with under the law and the Central Bank has the power to take enforcement action against any regulated entity who does not act in compliance with the CCMA. The Central Bank continues to supervise compliance with the CCMA and will investigate any issues that arise, including patterns of behaviour that suggest that the CCMA process is not being followed.

The level of mortgage arrears in Ireland continues to decline each year and the continued resolution of these arrears remains a key policy for the Government. In September, I published the report of the interdepartmental Mortgage Arrears Review Group. This group had been tasked to review the operation of the mortgage arrears resolution framework and identify any reforms or improvements that could be made to better address the problem of long-term mortgage arrears and emerging early arrears.

I look forward to the recommendations of the group being implemented and would urge any borrower in mortgage distress to engage with their lender or seek advice from MABS or from a personal insolvency practitioner. Engagement is key to finding a possible solution to problem debt.