Joan Burton (Dublin West, Labour)
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Question 68: To ask the Minister for Finance his views on the significant increase in mortgages in arrears for 90 days or more, now totalling 32,321; if he will provide an update on the progress made by the Interdepartmental Mortgage Arrears Review Group; if he envisages a need for legislation to implement the recommendations of this Group; and if he will make a statement on the matter. [25606/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The continued rise in arrears levels is disappointing, but in line with expectations. The numbers in arrears and the amount of lending involved are still at relatively low levels. Mortgage arrears are reckoned to track unemployment, with a lag of 6 months or so and the expectation is that mortgage arrears should stabilise in the course of this year as the unemployment position improves.

The figure of 32,321 mortgages in arrears in excess of 90 days referred to by the Deputy does not equate to the actual number of homeowner in arrears. This is because an estimated 20% of homeowners have two or more accounts, which are included in the figures quoted by the Deputy and reported by the Financial Regulator for period ended March 2010. Examples of this are where the mortgage is divided into part-fixed and part-variable or where a second account was opened to cover spending on an extension.

As has been stated on many occasions in this House, it is a priority of the Government to ensure that as far as possible that difficulties in relation to mortgage arrears do not result in legal proceedings for home repossession. I am confident that the support measures been taken by Government, including the Code of Conduct on Mortgage Arrears, the Mortgage Interest Subsidy Scheme and the services provided by MABS, are having a positive effect in this regard.

I note from the Financial Regulator's most recent data on mortgage arrears and repossessions that there has been a decrease of almost 31% in the number of applications to the Courts by mortgage lenders for legal repossession of properties in arrears, compared with figures for end quarter 2009.

In February this year, I announced the establishment of an Expert Group on Mortgage Arrears and Personal Debt, under the Chairmanship of Mr. Hugh Cooney, as a follow up to the Government's commitment under the Revised Programme for Government.

The Group has been in contact with various stakeholders on the mortgage arrears issue, and is preparing to submit a report to me by the end this month. Until the Group reports to me with its recommendations I am not in a position to say if legislation will be required.