Dáil Éireann Debate, Tuesday - 12 June 2018
191. Deputy Peter Fitzpatrick asked the Minister for Finance the protection in place for persons who want to restructure their mortgage in order that they can keep their family home (details supplied); and if he will make a statement on the matter. [24683/18]
Amharc ar fhreagraAs the Deputy is aware assisting those in mortgage arrears is a priority for this Government and there are a number of policies and supports in place for those in mortgage difficulties. The Deputy will be aware that the Code of Conduct on Mortgage Arrears (CCMA) sets out statutory requirements for mortgage lenders and credit servicing firms dealing with borrowers in or facing arrears on the mortgage loan secured by their primary residence.
Lenders must ensure that the case of each borrower is individually assessed on its merits to ensure fairness. The Mortgage Arrears Resolution Process (MARP) framework sets out the steps which lenders must follow. A lender must carry out affordability assessments by examining each case on its own merits and must base its assessment of the borrower's full circumstances including their ability to pay as determined by up to date information on a Standard Financial Statement (SFS).
A lender must explore all options for alternative repayment arrangements (that they offer) in order to offer the most viable solution to each borrower. The Code also requires lenders to review an alternative repayment arrangement at appropriate intervals for the type and duration of the arrangement. The lender is also obliged to carry out a review of an alternative repayment arrangement at any time, if requested by the borrower.
It may not be possible for your constituent and their lender to agree on an alternative repayment arrangement. If the lender is not willing to offer your constituent an alternative repayment arrangement, they must give the reasons in writing. If they do offer an arrangement, your constituent may choose not to accept it. If your constituent is not happy with the lender’s treatment of their case, or if they feel the lender has not complied with the CCMA, they can appeal to the lender under the Central Bank’s Consumer Protection Code 2012. If they remain unsatisfied with the outcome of an appeal or complaint, they can refer to the Financial Services and Pensions Ombudsman (FSPO).
The FSPO have developed an extensive guide for complainants which can be found at https://www.fspo.ie
As the Deputy is aware, notwithstanding the fact that the State is a significant shareholder in the institution, the Minister has no direct function in the relationship between AIB/EBS and its customers. The Minister must ensure that the bank is run on a commercial and independent basis. It would not be appropriate, therefore, for the Minister to intervene in the case of any particular customer.
However, I have received the following response from AIB:
"AIB Group (including EBS) has a dedicated unit established specifically to work with customers in financial difficulty. Customers, who are in arrears on their family home, are requested to provide a Standard Financial Statement together with supporting documents. The case is then assessed by a dedicated portfolio manager who is trained specifically to deal with customers in financial difficulty.
The Bank offers a number of long term solutions (some of which are unique to AIB Group). Solutions are offered to customers based on their affordability. The primary objective of AIB Group is to work with customers in difficulty and, wherever possible, agree a sustainable solution that enables them to stay in their family home.
The Bank has also established relationships with third parties, for example IMHO and MABS, in order to provide every opportunity for customers in financial difficulty to engage with the Bank to try to agree a sustainable long term solution.
In summary, AIB Group’s objective is to prioritise the customers’ family home and where possible agree a long term sustainable solution that enables families to stay in their home."
