Enda Kenny (Mayo, Fine Gael)

Of course we raised the question of distressed mortgages with each of the three banks. They have set out their strategies, which are parallel to the decisions taken by Government but these strategies will have to be discussed individually because the circumstances of each case are always different. I pointed out to them that as part of the measures taken in budget 2012, mortgage interest relief was increased to a 30% threshold for first-time buyers who bought between 2004 and 2008. This was a core commitment in the programme for Government. I also pointed out the additional measures that exist to assist people in difficulty with meeting their mortgage repayments. In the majority of cases, there is no intention of doing anything other than bringing about a solution whereby people can continue to live in their homes. There are a very small number of hopeless cases in the context of being able to achieve a resolution.

The Deputy is aware the banks have been recapitalised so as to be able to meet the circumstances that will apply in a number of distressed mortgage cases and they are aware of that. The revised code of conduct in respect of mortgage arrears came into effect on 1 January 2011, just over a year ago. Compliance with that code is mandatory on all mortgage lenders registered with the Central Bank and I raised questions with regard to implementation of the code. With effect from 30 June 2012, lenders must have the required systems in place and must have the trained staff necessary to support the implementation of the code. As the Deputy is aware, the code sets out the framework with which lenders must deal with regard to borrowers in arrears or in pre-arrears.

We also discussed the implementation of the Keane report, which made ten recommendations. The Personal Insolvency Bill, which is complex legislation, is currently going through the Oireachtas. We are also dealing with non-recourse to judicial decisions. I hope that the parallel steps being taken by the banks, the implementation of the Keane report and the consequences of the Personal Insolvency Bill will bring about a sense of relief for many mortgage holders with difficulties. The over-riding intention is to bring about a solution for those people so that they will not lose their homes, will receive some relief in terms of repayments and come to an agreement between themselves and the lender as to how best to achieve this.

I expect to have discussions with the banks again in a couple of months so as to review progress both in respect of lending figures and with how they are getting on with the extent of arrears and distressed mortgage holders they have on their books.

See this speech in context