Joe McHugh (Donegal North East, Fine Gael)
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Question 128: To ask the Minister for Finance if, further to public comments made (details supplied) he will make a comprehensive statement on the range of measures that he will introduce to assist defaulting mortgage holders in 2010; the thrusts and specifics of these measures; the approximate amount of funds that will be invested in these schemes; when the measures will be introduced; and if he will make a statement on the matter. [5993/10]

Joe McHugh (Donegal North East, Fine Gael)
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Question 129: To ask the Minister for Finance if, further to public comments (details supplied) he will identify the names or sectors of those who will make up the panel of experts; the number of persons who will sit this panel; if this panel will include retired banking personnel with experiences in this context; and if he will make a statement on the matter. [5995/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 128 and 129 together.

The Deputy will be aware of the supports in place for those homeowners who are in difficulty with their mortgage repayments, including the Code of Conduct on Mortgage Arrears, the Mortgage Interest Subsidy Scheme and the services provided by the Money Advice Budgeting Services, all of which I have spoken about extensively in this House over the past number of months.

In addition, in my Budget speech in December the Government refocused mortgage interest relief on those who bought their homes at the peak of the market, many of whom find themselves in negative equity. Where a homeowner's entitlement to mortgage interest relief would expire in 2010 or after, they will now continue to receive it up to the end of 2017. Since my Budget speech, I have written to the Financial Regulator requesting that consideration be given to extending the moratorium on mortgage arrears from 6 months to 12 months for all mortgage lenders.

As an additional support, the Irish Banking Federation has announced that its members will offer further reassurance to homeowners in difficulty with their mortgage repayments by holding off on legal action against those in difficulty, as long as the borrower complies with a mutually acceptable arrangement that can then be reviewed on a six-monthly basis. This new undertaking by IBF members is in addition to the existing safeguards provided by the Statutory Code of Conduct on Mortgage Arrears that applies to all institutions regulated in this country, not just the institutions covered by the Bank Guarantee Scheme.

In the Renewed Programme for Government, the Government has committed to a review of the measures with a view to expanding the options available for dealing mortgage problems. I have discussed with Cabinet colleagues the best way in which to proceed in this matter and will bring proposals to Government.

The House will be aware that an Inter-Departmental review group, chaired by my Department, has begun an examination of additional measures that might be taken. The Group has met on two occasions and work has commenced on bringing forward options for dealing with these matters. The Mortgage Arrears Review Group is examining options for improving State supports for home owners with mortgage arrears including schemes in operation in the USA and UK. These schemes are designed to address particular problems for particular groups of home owners and include options for re-financing mortgages, modifying the terms of existing loans, shared equity, and purchase of mortgages for the purpose of renting back to the home owner.