I understand the difficult situation faced by homeowners whose houses are affected by defective concrete blocks.
In terms of forbearance for such households that have a mortgage, 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, mortgage arrears and it sets out the process that entities must follow when a borrower is experiencing repayment difficulty. 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.
Entities must explore all of the options for alternative repayment arrangements (ARAs) offered in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances. The CCMA also provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into an ARA offered, or where the entity classifies the borrower as not co-operating.
The Central Bank does not have remit over commercial decisions of the entities it regulates. The nature of lender forbearance measures can vary and remain a decision for the individual institution, based on the individual circumstances of borrowers. However, the Central Bank has stated that it encourages borrowers to engage as early as possible with their lenders and to provide the information required to enable an assessment of the individual circumstances commence.
