Dáil Éireann Debate, Thursday - 18 October 2012
164. Deputy Jim Daly asked the Minister for Social Protection the process involved in becoming a recognised member of the panel of mediators to assist and advise borrowers in distress that she recently announced; and if she will make a statement on the matter. [45469/12]
View answerI 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 practising 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. This framework will be reviewed in June 2013.
The accountancy bodies have notified their members about the new service. Accountants, with practising certificates who want to be involved, need to indicate to their relevant accounting bodies their wish to participate in the service. To date, some 2,700 accountants have confirmed to their accounting body that they wish to be part of the panel and their details are now listed on www.keepingyourhome.ie on a county by county basis.
