Dáil Éireann Debate, Thursday - 22 June 2023
107. Deputy Rose Conway-Walsh asked the Minister for Finance if he has engaged with the retail banking sector regarding the provisions for forbearance measures and financing for mortgage holders whose homes are affected by defective blocks; and if he will make a statement on the matter. [30165/23]
View answer112. Deputy Mairéad Farrell asked the Minister for Finance if he has engaged with mortgage lenders regarding forbearance measures and finance options for mortgage holders whose properties are affected by defective blocks; and if he will make a statement on the matter. [30157/23]
View answer145. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he has engaged with the retail banking sector and representative groups regarding the provision of financing and treatment of mortgage loans with respect to homeowners in Donegal impacted by defective blocks; and if he will make a statement on the matter. [30221/23]
View answerI propose to take Questions Nos. 107, 112 and 145 together.
I met with the Banking and Insurance Defective Block Redress Focus Group yesterday to discuss their concerns, which included the issues raised by the Deputy. I understand the very difficult situation faced by homeowners whose houses are affected by defective concrete blocks, and the Government is determined to assist households impacted by this situation.
As the Deputy is aware, the Government response on this issue is led by my colleague the Minister for Housing, Local Government and Heritage. I understand from his Department that, following the enactment of the Remediation of Dwellings Damaged by the Use of Defective Concrete Blocks Act 2022, the necessary regulations under that Act are now close to finalisation.
While I do not have a regulatory role in respect of banks and other mortgage creditors – that is an independent matter for the Central Bank - I believe that the existing consumer protection regulatory framework is strong and should be fully implemented to assist households impacted by defective concrete blocks. This regulatory framework seeks to ensure that mortgage creditors 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.
In particular the Central Bank Code of Conduct on Mortgage Arrears (CCMA) requires regulated entities to have fair and transparent processes in place for dealing with borrowers in, or facing, arrears on a mortgage secured on a primary residence and this applies irrespective of the particular issue which is giving rise to the mortgage difficulty.
All CCMA cases must be handled in a sympathetic and positive manner by the regulated entity and the regulated entity must explore all of the options for an alternative repayment arrangement or any other relief method which may be offered by that mortgage creditor.
In relation to any request for new credit, while the decision of such applications are a commercial matter for the individual lender within the regulatory framework governing the provision of credit to consumers, such applications should be processed and assessed in an efficient manner in line with the time frames as set out in the Consumer Protection Code.
Regulated entities must also ensure that their staff are adequately trained to deal with the type of arrears (and pre-arrears) cases presenting to them and with any mortgage application. This framework should enable all regulated entities to deal with mica households in an appropriate and supportive manner, having regard to the unique circumstances that they face.
I would call on all regulated mortgage entities to step up to the mark and ensure that all mortgaged households impacted by defective concrete blocks are supported in their difficult situation.
