Dáil Éireann Debate, Tuesday - 9 October 2012
322. Deputy Paul J. Connaughton asked the Minister for Social Protection the reason suitably qualified financial services practitioners have been excluded from the new advisory service for mortgage holders in difficulty, which has been confined to accountants; his plans to change this; the qualifications deemed suitable; and if she will make a statement on the matter. [42689/12]
View answer376. Deputy Sean Fleming asked the Minister for Social Protection the reason financial brokers have been excluded from offering their services as part of the new advisory service for mortgage holders; if this matter will be reviewed and the reasons for this decision; and if she will make a statement on the matter. [43445/12]
View answer380. Deputy Sean Fleming asked the Minister for Social Protection the reason financial brokers have been excluded from offering their services as part of the new advisory service for mortgage holders; if this matter will be reviewed and the reasons for this decision; and if she will make a statement on the matter. [43468/12]
View answerI propose to take Questions Nos. 322, 376 and 380 together.
I recently announced a three-phased approach to establishing a comprehensive Mortgage Arrears Information and Advice Service to provide the necessary supports to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two involve the enhancement of the website www.keepingyourhome.ie and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears. The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland who have agreed to participate and support this independent service.
When a lender is proposing longer-term mortgage resolutions, the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and that, if the borrower wishes to avail of this option, that the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice. An operating protocol for the provision of this advice has been agreed between the main accountancy bodies and the lenders. The general scope of the advice will be limited to the borrower’s principal private residence.
The advisory framework has commenced with practicing accountants because they already operate within a regulatory regime which includes qualitative oversight by their regulating bodies and in these circumstances it was possible to establish the advisory framework for people with mortgage distress within a relatively short timeframe.
There is nothing to inhibit other financial intermediaries from continuing to give advice on mortgages as requested by borrowers. While the advisory framework will be monitored on an on-going basis, it is not intended to conduct a full review of the service before the due date of June 2013. The review will be undertaken to ensure that it is meeting its objectives and will encompass all aspects of the service including if participation is extended to other interested parties, the criteria that would be required in terms of relevant qualifications, experience, independence, professional indemnity insurance, etc. The accountancy bodies have notified their members about the new service and a panel is available on a county by county basis on the website www.keepingyourhome.ie.
