Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I have met a number of county registrars who have been dealing with these matters. Given the scale and the range of mortgages which have been in distress for quite some time, we are getting to the point where a judge is going to or is not going to make a recommendation for repossession. Many repossessions have been voluntary. The Money Advice & Budgeting Service, MABS, organisation has brought an element of compassion and understanding into this. I take the point the Chairman is making.

The point which was made to me, which I have communicated to the Department of Finance, is that if houses can be bought at market value by a friendly fund, by Government or whatever, such that they could be leased to the tenants over a longer period with a seamless transfer to them, it means nobody is put out of his or her house but there is a change of the method by which such people will be able to retain ownership in the time ahead. That is replicated in the revamping of the mortgage-to-rent scheme that the Minister for Housing, Planning, Community and Local Government, Deputy Coveney, has now brought in. The revisions to the scheme, which followed a very extensive review, constitute a series of actions to make mortgage to rent quicker, more transparent, easier to navigate for borrowers and ultimately more accessible to more households in mortgage distress. Those changes will dramatically increase the numbers of householders availing of the scheme to deal with the very point the Chairman raised. This has come through at the Cabinet sub-committee on a number of occasions. It is very distressing for families where the family home is under pressure for one reason or another. At the extreme end of mortgage arrears, where households may be facing the trauma of losing their homes, these changes are now being included as a solution to that to take that trauma and distress away.

The recent bank statistics show that the level of arrears is declining. The Minister, Deputy Coveney, has pointed out that there remain a significant number of borrowers in long-term mortgage distress who have no prospect of a significant change in their circumstances in the foreseeable future. The mortgage-to-rent scheme has not had the capacity so far to deliver significant volumes of transactions. Only 217 have been completed to date, with a further 635 reaching conclusion. New property valuation procedures and a new communications protocol are going to be put in place now and implemented to cover communications between borrowers and lenders at all stages of the mortgage-to-rent process.

The process for repairs to properties will be revised to speed that up. How delays arising at conveyancing stage on the legal end might be addressed will be explored at a forum which is going to be attended by the approved housing bodies before the end of quarter one of this year. A key objective of the actions will be a reduction in the average length of time for the completion of a transaction from between 12 and 18 months to less than nine.

The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 was enacted in July of 2015 to ensure consumer protection where loans are sold by the original lender to an unregulated firm. The Act introduced a regulatory regime for a new type of entity called a credit servicing firm. Credit servicing firms are now subject to the provisions of Irish financial services law that apply to regulated financial service providers.

Increasing the viability and familiarity of the scheme among borrowers is a critical objective. Once word gets out that this is an opportunity not to lose one's home but to get into a position where the home can be leased over a period with an option to buy would attract support from family members. The new Abhaile service and MABS will be important contributors to this. This new national mortgage arrears resolution service was launched back in October. It helps at risk home owners in mortgage arrears by providing access to expert financial and legal advice free of charge. Clients can get assistance in court if needed, have access to solicitors and get help obtaining legal advice. They can also get financial advice from a dedicated mortgage arrears adviser, a personal insolvency practitioner or an accountant, so it is hoped that might improve the position for people.