Dáil Éireann Debate, Tuesday - 8 May 2018
45. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government his plans to greatly expand the mortgage to rent scheme to obviate the sale of family homes by banks to vulture funds; and if he will make a statement on the matter. [13632/18]
Amharc ar fhreagraMy focus, and that of the Government, is to ensure that as many households as possible remain in their homes and in this regard, a range of measures are currently being implemented across Government Departments and agencies. These actions are focused on encouraging those in mortgage distress who have not been able to engage, to reach a long term debt resolution and avoid repossession if possible.
The Mortgage to Rent (MTR) scheme introduced in 2012 and administered by the Housing Agency on behalf of my Department is targeted at those households in arrears who are eligible for social housing support, whose mortgage is unsustainable. The MTR scheme is an established part of the overall suite of social housing options and an important part of the mortgage arrears resolution process.
A Review of the Mortgage to Rent (MTR) Scheme, published on 8 February 2017, introduced a range of amendments to the eligibility criteria and administration of the MTR scheme in order for it to work better for borrowers. The Review, available at the following link: http://rebuildingireland.ie/news/changes-in-mortgage-to-rent-scheme/, explored the avenues and impediments to participation in the scheme and recommended a number of actions to make the scheme work better for borrowers. My Department and the Housing Agency are working with all stakeholders to ensure that the actions set out in the Review are being effectively implemented to benefit a greater number of households. I am providing an additional €5m for the MTR scheme in 2018, which will support at least 250 additional MTR cases to be completed by AHBs working together with lenders using the MTR scheme. Additional resources can be made available to the Scheme in 2018, if required.
The MTR Review also concluded that the current financial model of the scheme may not, in its current configuration, be capable of delivering the scale of successful cases that could benefit from the scheme over time. In order to test the operability of alternative funding models for the scheme, the Housing Agency initiated a call for Expressions of Interest from bodies other than approved housing bodies (AHBs) interested in participating in a new MTR pilot scheme. Two submissions were received by the Housing Agency in response to the Expressions of Interest request. The EOI process is still on-going and I expect to be in a position to announce the outcome in the near future.
It is important also to highlight that there are no changes to the rights or obligations of a customer whose loan is sold by a bank. The Government introduced the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 to ensure that borrowers whose loans are sold retain the same protections which they had prior to the sale. In addition, as credit servicing firms servicing loans on behalf of unregulated entities are required to comply with the statutory Code of Conduct on Mortgage Arrears (CCMA), all protections under the CCMA are unchanged.
