Micheál Martin
Question:743. Deputy Micheál Martin asked the Minister for Justice and Equality his views on home repossessions. [44114/13]
View answerTuesday, 5 November 2013
Questions (743)
Written answers
This Government has consistently taken the line that repossession of a home should only be considered as a last resort when all other sustainable options have been fully considered but are not considered viable having regard to all the circumstances of the case. To that end, the Government has introduced a comprehensive framework to tackle the mortgage arrears problem.
- Lending institutions are working with borrowers in arrears to meet targets set by the Central Bank which will see the majority of them being offered sustainable solutions by the end of next year;
- The reform of the personal insolvency legislation, which I piloted through the Oireachtas, will see a range of alternative solutions being availed of by borrowers where their debt situation is not sustainable;
- Advice on dealing with mortgage arrears is available, independently of the lending institutions, through the Citizens Information Board help line and website (www.keepingyourhome.ie);
- Mortgage-to-rent cases are being finalised and agreed on an increasing basis with over 100 families finding solutions through this scheme.
Within the next 12 months, the Government expects that the vast majority of those who are currently in arrears will have been offered and, hopefully, have accepted a sustainable solution. The Central Bank has already set targets for resolving mortgage arrears cases and has made it clear that lending institutions which fail to meet these targets may face financial sanctions. It is essential that the institutions address this challenge as part of the process of repairing our damaged banking system.
Co-operating borrowers have nothing to fear from engaging with the lending institutions to find solutions to their difficulties. Already some 79,000 mortgage holders have had their mortgages restructured. Protections under the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) have been put in place precisely to allow cooperating borrowers the time and space to restructure their mortgage commitments to meet changed financial circumstances. That being said, it is worrying to see that, in the case of some institutions, up to one-third of borrowers in arrears are not engaging at all. I would urge all those in mortgage difficulties to begin the process of resolving the situation by talking to their lender as a matter of urgency.
I should add that, during the passage of the Land and Conveyancing Law Reform Act 2013 through the Oireachtas, I took the opportunity to insert two important provisions which will be of benefit to borrowers with arrears. Section 2 of the Act provides that in any future repossession proceedings in respect of a borrower’s principal private residence, the court may adjourn proceedings so that a proposal for a Personal Insolvency Arrangement (PIA) under the Personal Insolvency Act 2012 may be fully explored as an alternative to repossession. Section 3 of the Act introduces a requirement that repossession actions in relation to a principal private residence or family home where the mortgage was created prior to 1 December 2009 must be commenced in the Circuit Court.