Michael McGrath (Cork South Central, Fianna Fail)
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183. To ask the Minister for Finance in respect of each of the State-supported banks, their policy on providing for a write off of mortgage debt while allowing borrowers to remain in the family home; and if he will make a statement on the matter. [36693/13]

Michael Noonan (Limerick City, Fine Gael)
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I can inform the Deputy that the covered banks have provided me with the following information in relation to their policies on write offs of mortgage debt.

AIB

AIB has informed me that it reviews each individual's circumstances on a case by case basis through the provision by the borrower of a Standard Financial Statement where that is supplied by the customer. AIB proactively works with individual borrowers in arrears or difficulty with their mortgage to determine a sustainable long term solution that will ultimately allow them to exit from arrears. This may include debt compromise arrangements, such as the warehousing of a portion of the borrowers mortgage debt. However, the provision of any compromise or restructuring agreement to the borrower is predicated on the full cooperation and disclosure of the borrower, that the home is appropriate for their individual financial circumstances and that the borrower is making every effort based on their financial circumstances to repay the maximum sustainable portion of the mortgage debt outstanding and are prioritising the payment of their secured mortgage debt.

BOI

I am informed by Bank of Ireland that it deals with each customer's circumstances on case by case basis. The bank does not have a policy of debt forgiveness for secured owner occupier mortgage debt.

Permanent TSB

I am informed by Permanent TSB Group that it has put in place a range of long term sustainable solutions for co-operating customers who are in mortgage difficulties. A key aim of these treatments is to maintain as many borrowers as possible in their family homes.

As required in the Code of Conduct on Mortgage Arrears (CCMA) and as part of Permanent TSB's processes, co-operating customers complete a detailed Standard Financial Statement (SFS) outlining their circumstances. Following a detailed assessment of this information the Group will propose a sustainable long term treatment where the customer has the ability to meet its terms. This is designed to keep the maximum number of borrowers in their family home.

Permanent TSB will consider in certain circumstances, on a case by case basis as part of a long term sustainable treatment for a co-operating customer, an element of mortgage debt write off. Such debt write off will only take place at the end of the treatment and subject to the customer fully meeting their obligations under the agreed sustainable treatment.