Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Government is aware of the significant difficulties some homeowners are facing in meeting their mortgage obligations and the Deputy will know that a comprehensive strategy to tackle the problem is in place. Implementation of that strategy is a major priority and, in that context, the Central Bank mortgage arrears resolution targets – or MART – framework is key. Under this rolling process, quarterly performance targets have now been set to the end of June 2014 to require the banks to propose and put in place durable long-term solutions to address the individual cases of mortgage arrears.

The Central Bank has indicated that all six mortgage lenders covered by the MART process have reported that they met the 20% proposed sustainable solutions target for the second quarter of 2013 and also the 30% target for the third quarter in 2013. In particular, with respect to the third quarter 2013 target of 30%, which is the latest available data from the Central Bank, the lenders have reported to the Central Bank they had issued proposals to 43% of mortgage accounts in arrears.

The new monthly mortgage restructures and arrears data published by my Department will also provide an impetus for those MART banks to increase the pace of provision of mortgage restructures. That data shows that some progress has been made in putting permanent mortgage restructures in place. For example, the number of permanent restructures of permanent dwelling mortgages more than 90 days in arrears has risen from around 41,200 in August to around 49,300 in November 2013, an increase of almost 20%. The number of permanent restructures of mortgages more than 90 days in arrears has also increased.

The ongoing roll-out of the MART process, in particular the incremental targets to put in place sustainable mortgage restructures, will be very important for this. Of course, the MART process can only work for the benefit of borrowers in circumstances where the borrower works with the lender and engages with the process. Likewise, lenders must also communicate and engage with a borrower in difficulty in line with the requirements of the code of conduct on mortgage arrears. Early and effective engagement between borrowers and lenders is, therefore, key to resolving cases of mortgage difficulty. A reduction in the number of early arrears cases, as evidenced in recent statistics, shows the benefit of early engagement between both parties. Where there is effective and meaningful engagement between the borrower and lender, the data is showing that an increasing number of durable long-term mortgage restructures is being put in place.

However, I agree with the Deputy that it will now be necessary this year for banks to significantly build on progress made to date. The issue of mortgage arrears is a major problem that needs to be resolved, not only for an individual borrower and lender, but also for the long-term economic and social health of the country. A comprehensive strategy to do this is now in place and the Government will ensure that it is fully implemented by all the parties involved in this process.

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