Terence Flanagan (Dublin North East, Fine Gael)
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Question 141: To ask the Minister for Finance when he will implement the recommendations contained in the final report produced by the mortgage arrears and personal debt group; and if he will make a statement on the matter. [44046/10]

Lucinda Creighton (Dublin South East, Fine Gael)
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Question 145: To ask the Minister for Finance if he will outline the new measures to protect homeowners on mortgage arrears contained in the final report of the mortgage arrears and personal debt expert group; and if he will make a statement on the matter. [44080/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 141 and 145 together.

The Deputies will be aware that the Final Report by the Mortgage Arrears and Personal Debt Group (Group) was submitted to me on Tuesday 16th November and brought before Government on the same day.

The Final Report includes both a list of the recommendations in the Group's Interim Report and also additional recommendations arising from the findings of the Group in the second phase of its work following the publication of the Interim Report.

The Central Bank will publish a revised Code of Conduct on Mortgage Arrears shortly, which will give effect to many of these measures. Work on other recommendations is in hand. The new measures referred to by the Deputy in her question are summarised below under the headings 'Interim Report Main Recommendations' and 'Final Report Main Recommendations' for completeness. A complete list of all the recommendations is included in Chapter 2 of the Final Report available at (www.finance.gov.ie ).

Interim Report Main Recommendations

· All lenders will be required to put in place a Mortgage Arrears Resolution Process. This will ensure consistent treatment of borrowers in difficulty

· There will be much greater emphasis on communication with borrowers at all stages

· There will be standardised documentation and a consistent approach to borrowers in difficulty

· There will continue to be a strong emphasis on forbearance to give borrowers the opportunity and time to resolve their difficulties

· The Department of Social Protection should introduce an alternative and more equitable approach to achieving the MIS objectives an maintaining its sustainability in light of changes in the economic climate and the mortgage market.

Final Report Main Recommendations

· A Deferred Interest Scheme should be introduced for borrowers who can pay at least 66% of the interest. This would give borrowers up to 5 years to get back on their feet.

· Where a mortgage is unsustainable, assessment for social housing should be done before repossession takes place.

· A mechanism should be put in place to allow repossessed borrowers to remain in their homes for a time, allowing the housing authority time to source appropriate accommodation.

· New bankruptcy legislation should be introduced.

· A statutory non-judicial debt settlement system should be established

· The time limit for discharge of debt should vary in line with the total value of debt.