Finian McGrath (Dublin North Central, Independent)
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Question 75: To ask the Minister for Finance if he will consider getting the building societies and the banks to sign up to the Cloyne Report and moratorium for housing holders having difficulty with their mortgages. [23222/11]

Michael Noonan (Limerick City, Fine Gael)
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I assume that the Deputy is referring to the Deferred Interest Scheme that was recommended by the Expert Group on Mortgage Arrears and Personal Debt which published its report late last year. Under this scheme, subject to certain criteria being satisfied, borrowers are allowed to pay at least 66% of their mortgage interest but less than 100%. Payment of the balance may be deferred for up to five years. The Central Bank has advised me that a number of lenders have notified the Bank of their decision/intention to implement a Deferred Interest Scheme but with varying dates for its availability. Since the publication of the Group's Report, the Central Bank has revised the Code of Conduct on Mortgage Arrears (CCMA) to reflect many of the Group's recommendations, including recommendations relating to the introduction by all mortgage lenders, regulated by the Central Bank, of a Mortgage Arrears Resolution Process (MARP).

Chapter 3 (33) of the CCMA provides that:

'A lender must explore all options for alternative repayment arrangements, when considering a MARP case, in order to determine which options are viable for each particular case. Such alternative repayment arrangements must include :

a) an interest-only arrangement for a specified period;

b) an arrangement to pay interest and part of the normal capital element for a specified period;

c) deferring payment of all or part of the instalment repayment for a period;

d) extending the term of the mortgage;

e) changing the type of the mortgage, except in the case of tracker mortgages;

f) capitalising the arrears and interest; and

g) any voluntary scheme to which the lender has signed up e.g. Deferred Interest Scheme.'

In addition, Chapter 3 (47) of the CCMA provides that:

'Where a borrower co-operates with the lender, the lender must wait at least twelve months from the date the borrower is classified as a MARP case (i.e. day 31), before applying to the courts to commence legal action for repossession of a borrower's primary residence. The twelve month period commences on day 31 but does not include:

· any time period during which the borrower is complying with the terms of any alternative repayment arrangement agreed with the lender;

· any time period during which an appeal by the borrower is being processed by the lender's Appeals Board;

· any time period during which the borrower can consider whether or not they wish to make an appeal on the decision of the Mortgage Lender's Appeals Support Unit;

· any time period during which a complaint against the lender regarding any aspect of this Code, is being processed by the Financial Services Ombudsman's office; and

· for pre-arrears cases, the time period between the first contact by the borrower in relation to a pre-arrears situation and an alternative repayment arrangement being put in place.

A copy of the Code of Conduct on Mortgage Arrears is available on the Central Bank's website: www.centralbank.ie

The Government would urge all lenders to make available a Deferred Interest Scheme (DIS). I have been informed by the Central Bank that the lenders which have implemented a scheme are Bank of Ireland, ICS Building Society, EBS, Haven Mortgages, Permanent TSB and Springboard Mortgages. The following have indicated their willingness to implement a scheme later this year - AIB, AIB Mortgage Bank, Irish Nationwide Building Society and Start Mortgages.