Joe McHugh (Donegal North East, Fine Gael)
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Question 117: To ask the Minister for Finance if he will acknowledge that banks asset books contain huge private mortgages portfolios; that defaulted mortgages will leave banks in possession of assets worth less that their paper value; if budget 2011 will introduce mechanisms that encourage banks to negotiate with private mortgage holders on partial write-offs and credit negotiations; and if he will make a statement on the matter. [42244/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The mortgage portfolios which form part of a bank's asset book depend on the institution's level of activity in mortgage lending. Some financial institutions engaged in greater mortgage lending than others and would therefore contain larger mortgage portfolios. Although the number of mortgages in arrears has risen, the number of repossessions remains low.

The Deputy will appreciate that I will not comment on the contents of Budget 2011. However, I can say that as part of the Government's commitments to Protecting the Family Home and Helping Those in Debt under the Renewed Programme for Government, I established the Expert Group on Mortgage Arrears and Personal Debt last February to give effect to those commitments.

The Mortgage Expert Group submitted its Interim Report to me in early July. In general the recommendations of the Expert Group's Interim Report are intended to improve communication between householders in arrears and their lenders; provide for a more consistent assessment process by lenders of borrowers in difficulty and introduce an industry-wide Mortgage Arrears Resolution Process (MARP) including a range of forbearance measures. The recommendations have been accepted in full by the Government and implementation is under way.

I expect to receive a further Report from the Group very shortly.

Finally, I can assure you that it remains the Government's objective that home owners who are in difficulty should be assisted to retain their homes.