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Mortgage Arrears Proposals

Dáil Éireann Debate, Wednesday - 18 September 2013

Wednesday, 18 September 2013

Questions (630, 631, 632, 633)

Stephen Donnelly

Question:

630. Deputy Stephen S. Donnelly asked the Minister for Social Protection the total number of borrowers who have obtained independent financial advice following a proposed mortgage resolution by their lender under the Mortgage Arrears Information and Advice Service; and if she will make a statement on the matter. [37725/13]

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Stephen Donnelly

Question:

631. Deputy Stephen S. Donnelly asked the Minister for Social Protection the amount in total that has been paid to accountants for independent advice under the Mortgage Arrears Information and Advice Service; and if she will make a statement on the matter. [37726/13]

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Stephen Donnelly

Question:

632. Deputy Stephen S. Donnelly asked the Minister for Social Protection the annual budget to run and promote the Citizens Information Bureau's mortgage arrears helpline; the amount spent on the helpline to date; and if she will make a statement on the matter. [37735/13]

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Stephen Donnelly

Question:

633. Deputy Stephen S. Donnelly asked the Minister for Social Protection the annual budget to run and promote the Citizen Information Bureau's keepingyourhome.ie website; the amount spent on the website to date; and if she will make a statement on the matter. [37737/13]

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Written answers

I propose to take Questions Nos. 630 to 633, inclusive, together.

The Mortgage Arrears Information and Advice Service was established to provide a comprehensive and co-ordinated approach to assist people in mortgage distress. This service provides comprehensive information and advice to mortgage holders in arrears or pre-arrears in assessing their options. The service, which differentiates between mortgage information and mortgage advice, has three elements:

- The Mortgage Arrears Information Helpline (phone 0761 074050) provides general mortgage arrears information and signposting in relation to the Code of Conduct on Mortgage Arrears and other supports available for those in mortgage arrears or pre-arrears. The Helpline operates Monday to Friday from 9 a.m. to 5 p.m. and has had over 7,000 callers since July 2012. The annual budget is €374,400 and costs to date since its establishment at end July 2012 amount to €392,800. In addition, an information awareness campaign during Quarter 1 2013 cost some €80,400. The Mortgage Arrears Information Helpline is funded by the lenders.

- The redesign of the website: www.keepingyourhome.ie provided for the key online access for general mortgage arrears information and advice and has had over 147,000 visitors since June 2012. The annual budget for the website is €1,200 and the total costs to date since it was first established in 2009 are €5,400.

- 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. The advice is provided by a panel of accountants drawn from members of the main accountancy institutes in Ireland. A county by county panel with over 2,000 participating accountants is in place and their details are available on www.keepingyourhome.ie. Borrowers are free to choose their own advisor from this panel and the lender will pay €250 to the accountant of the borrower’s choice for the provision of this advice. The Central Bank collates the information relating to the number of borrowers who have availed of the independent financial advice service. To end June 2013 just over 100 invoices had been received by the lenders. It is worth noting that the numbers don’t directly relate to the reporting period as there will be time delays between the issue of the long term forbearance offer, the meeting with the accountant, and the receipt by the lender of an invoice. The cost of this service is met wholly by the lenders. It is estimated that the amount paid to date to the accountants participating in the service is in the region of €25,000.

It is expected that this service will become more important as the lenders roll out their long term forbearance options and as the Central Bank Mortgage Arrears Resolution Targets process intensifies. A full review of the independent financial advice service is underway to ensure that the service is meeting its objectives. The review encompasses all aspects of the service including an examination of the number of borrowers availing of the service and if the participation should be extended to other interested parties. As part of the review a process of consultation was undertaken and the review is expected to be completed by end October 2013.

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