Finian McGrath (Dublin North Central, Independent)
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Question 170: To ask the Minister for Finance if he will support a matter (details supplied). [6121/10]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 195: To ask the Minister for Finance his plans for persons who cannot repay their mortgage and are unable to sell their homes to clear their debt while building societies and banks want loans paid at high level fixed rates regardless of affordability; and if he will make a statement on the matter. [6503/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 170 and 195 together.

Home repossession should be and generally is the last resort for the lender. The preferred method of dealing with cases of arrears should be early intervention and engagement. In the revised Programme for Government we have stated that we will be:

· Introducing new measures to protect families having difficulties with their home mortgage payments;

· Examining ways of expanding the existing options available for dealing with debt situations;

· Examining ways of expanding existing state sponsored mortgage-support measures.

I approved the setting up of the Inter-Departmental Mortgage Arrears Review Group, chaired by one of my officials, for the purpose of bringing together all relevant information in Departments and examining options, including initiatives in other jurisdictions, in relation to the matter of support for home owners facing the problems of mortgage arrears and repossessions. The Law Reform Commission (LRC) which is under the aegis of my colleague the Minister for Justice, Equality, and Law Reform is addressing the issues of debt management and enforcement. In addition I have been discussing with Cabinet colleagues possible further initiatives in this matter and will in due course be bringing proposals to Government.

Other arrangements in place to assist consumers who have fallen into arrears or are in danger of falling into arrears include the Mortgage Interest Supplement Scheme, which provides assistance where the mortgage relates to a person's principal private residence, and MABS which provides a national, free, confidential and independent service. The Financial Regulator's Consumer Protection Code requires that a regulated entity must contact the consumer as soon as it becomes aware that a mortgage account is in arrears and that it must have in place a procedure for handling accounts in arrears.

In response to the continuing difficulties being faced by mortgage holders, the Financial Regulator has written to all mortgage lenders informing them that with effect from 17 February 2010, the Code of Conduct on Mortgage Arrears has been amended to require that lenders must now wait twelve months from the time arrears first arise before applying to the courts to commence enforcement of any legal action on repossession of a borrower's primary residence. Contraventions of the Code may be subject to the imposition of administrative sanctions by the Financial Regulator. The requirements of the Consumer Protection Code, including those on mortgage arrears, continue to apply. The updated code and letter issued to institutions on Friday is available on the website at http://www.financialregulator.ie/processes/consumer-protection-code/Pages/codes-of-conduct.aspx.