Tom Fleming (Kerry South, Independent) | Oireachtas source

Figures released by the Central Bank in September indicated that the mortgage arrears crisis is continuing. The data showed that the number of mortgages in arrears of more than 90 days fell. At the time that figure fell for the fourth consecutive quarter but well over 120,000 homeowners continue to carry the burden of mortgage debt and long-term arrears. This figure is continuing to grow. According to the bank's statistics, over 37,000 mortgage accounts were in arrears for more than 720 days, over two years, during the second quarter of this year, an astounding figure. Instead of making progress with their arrears these people, who became seriously indebted at the early stages of the economic crisis, are becoming more deeply trapped in the quagmire. There has been an accelerated rate of applications to repossess homes. Over 3,000 repossession proceedings had issued by the end of the third quarter of this year.

Local authority lending is also crippled by arrears. This sector is often forgotten about and is a sector that does not seem to have been given any focus in this crisis. A great proportion of loans in this sector are in arrears to the banks. The total outstanding value of all local authority mortgages stood at almost €1.2 billion at the end of 2013. Almost one in three local authority mortgages were in arrears of over 90 days. Almost 20,000 people have a local authority or council mortgage and over 6,000 of these were in arrears of more than 90 days at the end of last year. Local authority councils have repossessed more than 400 houses between 2010 and 2013 and, according to the figures of the Department of the Environment, Community and Local Government, many of the people involved may find themselves reliant on our social housing system. The system is already unable to cope with the existing numbers of qualified applicants on the lists. We are well aware of this but it puts all these councils in a precarious position. They will now have to re-house the people whose houses have been repossessed. This will rebound on the local authorities that are already under pressure.

The Irish Mortgage Holders Organisation ought to be commended on its outstanding work on reaching agreement on a long-term resolution for 1,330 people in mortgage arrears. This was achieved under the pilot scheme conducted with the AIB during the past 12 months. Since its establishment the scheme has been available free of charge to all AIB customers, including those with the EBS and Haven. As well as the 1,330 people referred to a further 177 cases are due to be decided shortly. In 30% of these cases customers who were facing proceedings managed to achieve a long-term sustainable solution. Strong commendation is due to David Hall and his organisation for achieving this.

I am pleased that the arrangements between the IMHO and AIB is to be extended for a further 12 months with an expanded team. The team is now functional and receiving over 125 calls per day. This will mean, for example, that in many of the these distressed mortgage cases a resolution can be achieved within two months or seven or eight weeks.

The Oireachtas Joint Committee on Finance, Public Expenditure and Reform produced a report on mortgage arrears in July. It recommended that the project be rolled out nationally to involve all the banks. It was disappointing to learn at today's finance committee meeting that the chief executive of Bank of Ireland, Mr. Richie Boucher, more or less did not embrace the concept. He was not over-enthusiastic when he was asked about extending the project to his bank. I understand Ulster Bank has a similar line of thought and is rejecting it.

It is interesting to note that Bank of Ireland repossessed 621 owner-occupied or buy-to-let properties in the first half of this year. This data was in documentation given to Oireachtas Members at the committee meeting today. The bank representatives told the committee that 322 judgments were enforced against owner-occupiers and 299 on buy-to-let investments. This means that the properties were either in the bank's possession or had been sold. In the first six months of this year the bank sold 80 properties that it had repossessed. Data provided to the committee shows that 85 properties were repossessed in 2010, rising to 166 the following year, to 180 in 2012 and to 214 for last year. This means a grand total of 645 people have been evicted from their homes, to put it mildly.

Between 2010 and last year Bank of Ireland disposed of 383 of these properties, which are so needed by victimised people who have borne the brunt of what the banks have been carrying out in recent years. They were walked up the garden path in many respects. Now, with low pay, cuts to their pay packets and ongoing taxes, of which there is a long list, these people cannot keep a roof over their heads. They are only trying to survive and live. Mr. Boucher indicated he intends to veto the insolvency arrangements. I believe this is a drastic measure and that there should be more co-operation in this respect.

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