Mr. David Hall:

I wish the Chairman and members a good morning. To introduce ourselves, my name is David Hall and I am the chief executive of the Irish Mortgage Holders Association. I am joined by Stephen Curtis, a personal insolvency practitioner who leads our negotiation team. We are a charity and have in place 8,500 resolutions that are keeping people in their homes. We offer a free bankruptcy service. We are regulated, have a personal insolvency practitioner and are regulated to provide all the insolvency service solutions, as they are called. Moreover, we have styled and organised ourselves as a one-stop-shop representing those who are in debt. Over the past four years, we have been to the fore in advocating for people and assisting those who are in mortgage difficulties and are facing repossession.

This morning, I will focus mainly on what I believe is a looming catastrophe that could lead to the current homelessness crisis becoming significantly worse. To give the committee some context, at present there are 5,241 people in emergency accommodation and 102 rough sleepers. I apologise, as members will be well aware of most of these figures, but it is important to set the scale because our submission today is made on the basis of this being a catastrophe rather than a crisis. The current figures before members regarding those who are facing homelessness or who are homeless will be dwarfed significantly by those who are in mortgage arrears in the event that they come into the system. The scale of the mortgage arrears crisis dwarfs the already chronic crisis. At present, 33,000 family homes are at risk of repossession and are in or are about to enter the court system. At present, 20,000 family homes are before the courts. The aforementioned 33,000 homes represent more than €2 billion in arrears and represent 84% of the entire arrears amount of €2.4 billion that currently is outstanding to all lending institutions. In other words, €2.01 billion of the €2.4 billion in arrears focuses the crisis clearly on this cohort of people who are in arrears of more than two years.

In addition, 15,000 investment properties have been in arrears for more than two years. They are at risk of receivers being appointed daily - they are being appointed daily - which results in tenants being evicted. These figures also include 13,000 mortgages owned by vulture funds that have been in arrears for more than two years. Despite the protestations of vulture lovers and the moral hazard brigade, vulture funds do not offer long-term restructuring to homes in arrears. They do not refinance or restructure investment properties and do not have long-term aspirations to support housing policy or the structure in Ireland in any shape or form. Between family homes and investment properties, 48,000 mortgages are facing either repossession or receivers. At a conservative estimate, this equates to 100,000 people. I stress the numbers I am presenting are conservative, are not exaggerated and err greatly on the side of caution. As big as is the existing crisis with 5,000 people being homeless, the spectre of a further 100,000 people or even a fraction of that number becoming homeless raises the prospect of a human disaster.

Most recently we have been inundated by home owners and tenants who are in difficulty and who are facing receivers and the threat of being evicted from their homes. Both mortgage holders in difficulty and tenants who face being evicted are presented with a stark reality, namely, a dysfunctional rental market that is increasingly unaffordable. Moreover, in many cases it is not possible for tenants and home owners to rent and they therefore face homelessness. I am sure members will agree that were even 10% of the aforementioned 48,000 mortgage cases to result in the occupants becoming homeless, the current crisis would be doubled overnight.

We believe radical thinking and radical action are required. A previous Oireachtas guaranteed the liabilities of insolvent banks and provided €64 billion in funding to them.

We hope the committee will take some radical approach to protecting citizens, as happened in the case of the banks.

As members will see from our document, we outline a number of suggested approaches to take. We are willing to go through those over the course of this session. Homelessness itself is a massive issue. The physical upheaval of losing one's home is horrific. However, along with homelessness, there is a huge mental health issue. Those in debt and facing homelessness suffer silently with significant mental health problems. A recent survey, which we conducted with Dr. Eddie Murphy, showed that 20% of those in debt difficulty and facing homelessness had planned to take their own lives in the four weeks prior to the survey.

The challenge facing this committee in resolving the problem could not be more stark. From our perspective, we will give the committee a full commitment in the context of our co-operation, support and help in any shape or form that can be given in facing that task.

Mr. Lorcan O'Connor and his colleagues from the Insolvency Service of Ireland, ISI, are an excellent team of people. The legislation established the ISI in the context of having over 100,000 properties at risk of repossession. There are four cohorts: those in arrears; those nearly in arrears; those in long-term arrears; and those hanging on by the skin of their teeth. I know that Deputies are aware of this.

It was a funny prospect to watch an organisation come in previously and be asked exceptionally knowledgeable and intelligent questions. We joked outside and said that I might do the opening remarks and let Mr. Stephen Curtis do the answers, which would be far more comfortable. Deputy Coppinger asked one of the key questions. Given the scale of this problem, the ISI, with the greatest respect to it, has resolved 0.085% of mortgages in difficulty. It has resolved only 1,000. The other important aspect is that it does not determine which of those are buy-to-let properties or family homes; it is 1,000 combined. In addition, the statistics from the ISI's report, only just published, indicate that 4,000 people applied to the service but that only 2,000 of those got deals. The extra 1,000 are bankruptcies. Thus, there is a 50% success rate in getting through a convoluted and complicated process. It is mentioned in the programme for Government, and I hope it is adhered to, that the process needs to be up-ended.

This is a crisis, a potential catastrophe. I met Fr. Peter McVerry on Friday and respectfully said to him: "You think 5,200 is a problem. It's nothing as to what is coming unless radical steps are taken to prevent that."