Finian McGrath
Ceist:158. Deputy Finian McGrath asked the Minister for Finance his views on a matter (details supplied) regarding mortgages; and if he will make a statement on the matter. [17665/15]
Amharc ar fhreagraWednesday, 6 May 2015
Ceisteanna (158)
Freagraí scríofa
I thank the Deputy for bringing the Irish Home Assist Mortgage Scheme to my attention. As the Deputy is aware, the Government has put in place a broad strategy to address the problem of mortgage arrears and family home repossessions. The primary focus of this strategy is to support those homeowners in difficulty with their mortgage repayments and, in so far as possible, to avoid repossession of the family home.
The Central Bank's Code of Conduct on Mortgage Arrears (CCMA) sets out requirements for mortgage lenders dealing with borrowers facing or in mortgage arrears on their primary residence. The CCMA provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender, and that long-term resolution is sought by lenders with each of their borrowers.
I am strongly of the view that where a borrower engages with his lender with a view to putting in place a restructure arrangement to address his/her mortgage arrears situation, repossession of the family home should only be considered as a last resort. The Central Bank's most recent quarterly release on Residential Mortgage arrears and Repossessions (Q4 2014) indicates that almost 115,000 restructure arrangements have been put in place.
Where a mortgage in arrears is deemed to be unsustainable by the lender the mortgage to rent scheme, administered by my colleague, Alan Kelly, TD, Minister for the Environment, Community and Local Government, may be a viable alternative which will keep the borrower in the family home.
The effective management of the mortgage arrears issue is, however, an area that remains under continuous review. More and concerted action can be undertaken by the banks to assist customers in arrears and, as the Taoiseach has previously announced, the Government is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions.