Dáil Éireann Debate, Tuesday - 9 June 2015
1067. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the loan restructuring options available under the local authority mortgage arrears resolution process; his plans to extend this range of options to include, for example, split mortgages or mortgage write-downs; and if he will make a statement on the matter. [22036/15]
Amharc ar fhreagraThe Central Bank’s code of Conduct on Mortgage Arrears requires all mortgage lenders to ensure that it has in place a Mortgage Arrears Resolution Process (MARP) as a framework for handling such cases. My Department introduced such guidelines to local authorities in 2012 and, subsequently, issued revised guidelines in June 2014. These guidelines - Dealing with Mortgage Arrears – A Guide for Local Authorities are available on my Department’s website at the following link: http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,30943,en.pdf.
A range of alternative repayment arrangements are available to local authority borrowers in arrears under the MARP. These include:
- interest only repayments on the mortgage for a period of time;
- paying interest and part of the capital for a period of time;
- deferring, in exceptional circumstances, payment for a period of time;
- extending the term of the mortgage to maximum of 35 years and maximum borrower age of 70;
- changing the type of the mortgage, in certain circumstances;
- adding arrear s and interest to the principal amount due; and
- Local Authority Mortgage to Rent (MTR) scheme.
There are no plans at this time to extend the list of options available to local authority borrowers. However, the operation of MARP within local authorities is kept under constant review.
