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Mortgage Arrears

Dáil Éireann Debate, Tuesday - 22 May 2012

Tuesday, 22 May 2012

Ceisteanna (247)

Michael McGrath

Ceist:

334 Deputy Michael McGrath asked the Minister for Social Protection the progress made to date on the establishment of the independent mortgage advisory function recommended in the Keane report on mortgage arrears; and when she expects this service to become operational. [25131/12]

Amharc ar fhreagra

Freagraí scríofa

My Department participated in the Interdepartmental Mortgage Arrears Working Group (referred to as the Keane group) and is a member of the Steering Group set up by the Minister for Finance to oversee and drive its overall recommendations. The Interdepartmental Mortgage Arrears Working Group recommended that an independent Mortgage Support and Advice Service be established to advise mortgage holders in arrears or pre-arrears in assessing their options. The report stated that the need for this service would be time limited to approximately 3 years.

The publication of the heads of the Personal Insolvency Bill in January 2012 propose the introduction of a four step process to address personal insolvency issues with the first three steps involving non-judicial debt settlement arrangements. This is a new arrangement and was not envisaged when the thinking in support of a Mortgage Advisory Service was originally proposed. My Department is examining the role envisaged for the Personal Insolvency Trustee to ensure that there is no conflict with or duplication of Government supported services. From the customers perspective for example, the target group and complexity of the problems that need to be addressed appear to be similar and from the advisory perspective, the skills and expertise required would also appear to be similar for both services.

My Department is chairing a Working Group as part of the Implementation Steering Group to examine the issues relating to the establishment of the Mortgage Advice Service. As part of its remit it is examining the efficiency, necessity and governance arrangements of potentially two separate services. The needs of the customer, the importance of ease of access and information on services and the way in which the services will be made available must be to the fore.

Given that more than 70,000 people have already entered into arrangements with their lenders, it is important that any new service would focus on those who have yet to engage with their lender and support those who are in the earlier stages of negotiations with their lender as a first step in seeking to resolve their difficulties. The Working Group has not yet concluded its deliberations. It reports regularly to the Implementation Steering Group and to the Cabinet Committee on Mortgage Arrears.

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