Pearse Doherty
Question:137. Deputy Pearse Doherty asked the Minister for Finance his plans to place the code of conduct on mortgage arrears on a statutory footing; and if he will make a statement on the matter. [16939/16]
View answerTuesday, 21 June 2016
Questions (137)
Written answers
The Code of Conduct on Mortgage Arrears (CCMA) was issued by the Central Bank pursuant to the provisions of Section 117 of the Central Bank Act 1989 and regulated entities are required to comply with the provisions of the Code as a matter of law. The CCMA is therefore issued under statute and, as stated by the Supreme Court, it forms part of the law. The Central Bank has the power to administer sanctions for a contravention of this Code under Part IIIC of the Central Bank Act 1942.
It is clear that where a borrower actively engages with their lender under the CCMA with a view to agreeing a sustainable arrangement to address their mortgage arrears, it is more likely that an equitable arrangement will be found and that borrower will be able to remain in their family home. Over 120,400 PDH mortgage accounts have been restructured up to the end of Q1-2016.
As the Deputy is aware, the CCMA has already been reviewed and updated over time and the Government will work with the Central Bank to ensure that the code continues to be relevant, fair and balanced in respect of the legitimate interests of debtors and creditors all the while promoting the availability of sustainable solutions to address genuine mortgage difficulty.