Mortgage Arrears Rate

Dáil Éireann Debate, Thursday - 15 November 2012

Thursday, 15 November 2012

Questions (28, 102, 103)

Bernard Durkan

Question:

28. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he continues to be updated by the various lending agencies in the matter of mortgage arrears with particular reference to the extent of arrears and of repossessions in respect of family homes, buy-to-rent or commercial properties; if he has been apprised of how lending agencies have addressed the shortfall arising from the situation whereby properties in negative equity have been disposed of leaving a balance in some cases in excess of 50% of the current market value; if the lending agencies are known to have insured against such potential liability; if a pattern has emerged in regard to the level of repossessions or settlements as between different lending agencies; and if he will make a statement on the matter. [50255/12]

Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which lending agencies have insured against bad debt; the extent to which any such claims have been made on an annual basis over the past four years and to date in 2012; and if he will make a statement on the matter. [50804/12]

Bernard Durkan

Question:

103. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which lending agencies have suffered a loss arising from repossessions of family homes or commercial properties in each of the past four years and to date in 2012; the extent if any to which these losses have been offset by various forms of insurance cover; and if he will make a statement on the matter. [50805/12]

Written answers

Minister for Finance

I propose to take Questions Nos. 28, 102 and 103 together.

As the Deputy is aware, the Central Bank receives quarterly submissions from all mortgage providers which detail the overall size of mortgage books and, in respect of such lending, data is also provided on:

- arrears levels;

- restructure levels;

- levels of Court proceedings and

- repossessions.

The Central Bank publishes this data, on an industry aggregate level basis, each quarter and it is available on the Central Bank’s website (www.centralbank.ie ). To date, the data collected and published has been on mortgages in respect of private dwellings but this is now being expanded to also cover “buy to let” mortgages and the first publication of this expanded data set will take place before the end of this year.

The Central Bank advises that the level of repossessions has been low and so has the level of disposals of properties in possession. I am also advised by the Central Bank that the general approach of banks, following disposal, is to arrange payment plans to address outstanding shortfalls. However, such matters are commercial decisions of banks and individual circumstances and situations are usually assessed on a case-by-case basis. I am also advised by the Central Bank that insurance against such potential shortfall loss is the exception rather than the norm.