Dáil Éireann Debate, Thursday - 17 July 2014
180. Deputy Michael McGrath asked the Minister for Finance the number of residential mortgages that have been subject to more than one restructuring arrangement; and if he will make a statement on the matter. [32690/14]
View answerThe Central Bank has advised that it does not publish the number of residential mortgages that have been subject to more than one restructuring arrangement. However, I understand that many restructures are proposed on a trial basis during which the payment capability of the borrower is tested before the offer counts as a permanent restructure.
As statutory regulator of credit institutions, the Central Bank has the power to require banks to meaningfully address mortgage arrears cases on their books. As the Deputy is aware, the Central Bank has set specific targets, which the six main banks are required to meet on a quarterly basis, in terms of offering and concluding sustainable solutions for those in mortgage arrears of greater than 90 days. The Central Bank's latest 'Residential Mortgage Arrears and Repossessions Statistics' publication for the end of Q1 2014 (http://www.centralbank.ie/press-area/press-releases/Pages/ResidentialMortgageArrearsandRepossessionsStatisticsQ12014.aspx), shows that 92,442 principal dwelling houses (PDH) mortgage accounts were categorised as restructured at the end of March 2014, an increase of 10 per cent from the stock of restructured accounts reported at the of December 2013.
The monthly mortgage restructures and arrears data for the six main lenders (about 90% of the market) published by my Department also provides an impetus for those MART banks to increase the pace of provision of mortgage restructures. The latest publication, in respect of the end of May, shows that some progress has been made in putting permanent mortgage restructures in place. For example, the total number of permanent restructures of principal dwelling houses (PDH) mortgages has risen from around 51,000 in December to over 69,000 in May 2014.
This data, as well as the Central Bank quarterly mortgage arrears publications, would appear to demonstrate some success by the lenders in addressing the accounts in arrears as well as measures to prevent borrowers from going into arrears. Taken together, the framework is in place to enable banks to work with distressed homeowners to reach sustainable solutions for dealing with their personal indebted situations. However, early and effective engagement between borrowers and lenders is key to resolving the cases of mortgage difficulty. Where there is effective and meaningful engagement by all parties regarding a mortgage difficulty, the data shows that an increasing number of durable long term mortgage restructures is being put in place.
