Michael Healy-Rae (Kerry South, Independent)
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Question 49: To ask the Minister for Finance if in excess of 57,000 families are now in arrears with their mortgage repayments; if not, if he will provide a figure for same; his plans for families who find themselves in dire circumstances at present; and if he will make a statement on the matter. [26718/11]

Michael Noonan (Limerick City, Fine Gael)
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Figures compiled by the Central Bank show that, at the end of June 2011, there were 55,763 private residential mortgages in arrears for more than 90 days. Of the 55,763 mortgage accounts in arrears, because of remortgages, top-ups etc., the actual number of households in arrears is somewhat lower with the Central Bank estimating the household number to be of the order of 45,000. There are a number of measures in place to assist home owners who are experiencing difficulty with mortgage repayments.

The Deputy will be aware of the Report of the Expert Group on Mortgage Arrears and Personal Debt. All of the Group's recommendations are listed in Chapter 2 of the Report which can be accessed at www.finance.gov.ie.

One of the recommendations of the Group was that lenders should offer a Deferred Interest Scheme (DIS) to borrowers. 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 5 years. Lenders representing the majority of the market have already implemented (or indicated their willingness to implement) the Group's proposals for a DIS or a variation of it. While the Scheme is voluntary for all lenders, those who have signed up in support of the Scheme will be monitored by the Central Bank to ensure compliance.

Since the publication of the Group's Report, the Code of Conduct on Mortgage Arrears (CCMA) has been revised by the Central Bank to reflect many of the Group's recommendations, including key recommendations relating to the introduction by all lenders, regulated by the Central Bank, 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 cooperate with the MARP,

· harassment of borrowers through unsolicited communication is outlawed,

· borrowers in financial difficulties, but not in arrears, are allowed to come under the MARP,

· when determining the 12 month period the lender must wait before applying to the courts to commence legal action, the lender must exclude any time period during which the 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.

The revised CCMA came into effect on 1 January 2011 and can be accessed at www.centralbank.ie. Lenders are required to comply with the CCMA as a matter of law. With effect from 30 June 2011, lenders must have in place the requisite systems and trained staff necessary to support the implementation of the MARP.

A working group has been established under the Economic Management Council to consider the state of implementation of the main recommendations of the Expert Group on Mortgage Arrears and Personal Debt. This Group has also been asked to consider and develop further necessary actions to alleviate the increasing mortgage over-indebtedness problem. I expect that the Group will complete its work in the very near future.