Brian Stanley (Laois-Offaly, Sinn Fein)
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Question 54: To ask the Minister for Finance the progress made to date in developing solutions to mortgage holders currently in mortgage distress; and the date on which he will publish the relevant legislation. [14243/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware of the work of the Expert Group on Mortgage Arrears and Personal Debt (the Group) which produced its Final Report in November 2010. All of the Group's recommendations are listed in Chapter 2 of the Final Report. They can be accessed at www.finance.gov.ie.

Since publication of the Final Report, the Code of Conduct on Mortgage Arrears (CCMA) has been revised by the Central Bank to reflect many of the recommendations of the Group, including key recommendations relating to the introduction by all regulated lenders of a standardised Mortgage Arrears Resolution Process (MARP). The most significant changes in the revised CCMA include: - Penalty interest charges may not be imposed on borrowers in arrears who co-operate with the Mortgage Arrears Resolution Process, - Harassment of borrowers through unsolicited communications is outlawed, - Borrowers in financial difficulties, but not in arrears, are allowed to come under the MARP, - When determining the 12-month waiting period, the lender must wait before applying to the courts to commence legal action, and the lender must exclude any time period during which a borrower is complying with the terms of an alternative repayment arrangement, making an appeal to the internal appeals board or making a complaint to the Financial Services Ombudsman under the CCMA. The revised CCMA was published on 6 December 2010 and came into effect on 1 January 2011. The revised CCMA can be accessed at www.centralbank.ie. Lenders are required to comply with the CCMA as a matter of law but have been given a period of six months ending on 30 June 2011 to put in place the requisite systems and training of staff necessary to support the implementation of the MARP.

With input from the National Consumer Agency, the Central Bank has produced a consumer guide to assist consumers in understanding the new process under the revised Code that they should expect from lenders. That guide, together with a number of questions and answers, is also available on the Central Bank's website.

The recommendation of the Group to amend the local authority needs assessment process has been implemented by the Department of the Environment, Community and Local Government (DECLG). Local authorities have been provided with guidance on the treatment of applicants for social housing support whose mortgages have been deemed unsustainable. Discussions are ongoing between the DECLG and the Irish Bankers' Federation to enable borrowers whose properties are to be repossessed to remain in their homes for a period of time, pending the sourcing of appropriate accommodation by the housing authority.

As regards the recommendations of the Group in relation to the mortgage interest supplement scheme, I have been informed by the Department of Social Protection that the implementation of these recommendations will require changes to both primary and secondary legislation. That Department is currently finalising an implementation plan that will set out a framework for the future of the mortgage interest supplement scheme.