Jerry Buttimer (Cork South Central, Fine Gael) | Oireachtas source

While I welcome the opportunity to speak on this Bill, we cannot give people false hope. We must encourage engagement both on the part of the banks and people who are in mortgage distress. Banks should be mindful that the importance of the family home cannot be underestimated. It is not a question of bricks and mortar or the number of bedrooms; it is about a lifetime of memories and a key part of a family's sense of place and belonging. Any threat to a family home gives rise not only to financial challenges but also places an emotional strain on every aspect of life and affects the physical and mental well-being of families. All of us deal with constituents who have issues with their banks for various reasons. Perhaps the most devastating impact of the economic crisis has been the tens of thousands of family homes that have been placed at risk by the policies pursued by Fianna Fáil when it was in Government. Husbands and wives, partners and children have been directly affected but there is also an impact on the wider family and neighbours. Unfortunately, the latest figures from the Central Bank indicate that 89,476 mortgages are still in arrears.

While this is far too many, there is, thankfully, a decline from previous months. There also has been a decline of 1,930 in the number of mortgage accounts in arrears for more than 90 days to 62,266. Last December, the number of permanent mortgage restructures increased by 1,916. They are not just figures, they refer to people's lives. I keep making that point. What we must all do is collaborate to put in place a solution to look after these families.

The Minister has confirmed to us in the House that she has completed a review of the personal insolvency legislation as promised under the statement of Government priorities 2014 to 2016. She has said she will bring proposals to Government for any necessary legislative changes following consideration of the review. The wheels of change turn slowly in the House and many parts of the Civil Service. I ask the Minister and Minister of State at the Department to ensure that every effort is made to bring forward proposals to put in place further measures to help all of the families affected.

The mortgage market is a delicate one and we must be careful to ensure that any changes do not discourage lending. At the same time, we must hold banks to account for how they do their business. We should take a more comprehensive look at the types of mortgages available. Currently, when a mortgage is surrendered and the bank sells the property, it can go after the mortgage holder personally for the balance of any money not recovered. In America, they have the non-recourse mortgage which means that when the keys are handed back, the bank cannot go after the home owner personally. It can only sell the property. The advantage of this system is that it forces banks to have an interest in reasonable and realistic prices. It means that if banks engage in excessive lending, they carry the risk also. If we are to avoid a repeat of the disaster we have had, non-recourse mortgages might be considered as a real alternative when it comes to family homes. As banks already use non-recourse mortgages in some commercial deals, why not use them for family homes? Non-recourse mortgages could be restricted to the first loan to purchase a property and it could be provided that they would remain in place only while the property is the primary residence of the mortgagor.

We require creative and effective solutions for mortgage arrears, but we must also look at long-term mortgage policy. I hope the Minister and her colleagues in Cabinet can bring forward proposals as soon as possible in the interests of the families and people who require the assistance of all Members of the House. We must work collaboratively to ensure that we preserve and protect the family homes of so many people.

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