Robert Troy (Longford-Westmeath, Fianna Fail)
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Question 65: To ask the Minister for Finance when he will introduce measures to assist persons struggling with home mortgages. [36549/11]

Michael Noonan (Limerick City, Fine Gael)
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There a number of measures in place to assist people who are having genuine difficulties in meeting their mortgage repayments. The Central Bank's revised Code of Conduct on Mortgage Arrears (the Code) applies to mortgage lending activities with borrowers in respect of their principal private residence in the State. Compliance with the Code is mandatory on all mortgage lenders registered with the Central Bank. The Code came into effect on 1 January 2011.

With effect from 30 June 2011, lenders must have in place the required systems and trained staff necessary to support the implementation of the Code. The Code sets out the framework that lenders must use when dealing with borrowers who are in arrears or are in pre-arrears. For the purposes of the Code a "pre-arrears" case arises when the borrower contacts the lender stating that he or she is in danger of getting into financial difficulties and/or is concerned about getting into mortgage arrears. The Code can be accessed at www.centralbank.ie . The Central Bank has produced, with input from the National Consumer Agency, a consumer guide to assist consumers in understanding the new process under the revised Code.

Prior to the Summer recess, the Economic Management Council asked an Inter-Departmental Group to consider further necessary actions to alleviate the increasing problem of mortgage over-indebtedness. As the Deputy is aware, the Group's report has now been published and it is still the subject of a detailed and very worthwhile debate in the Dáil.

However, progress has already been made in response to acting on a number of the recommendations of the Inter Departmental Report and work has commenced across a number of Departments and agencies. These will build on the measures already in place to assist mortgage holders such as the revised Code of Conduct on Mortgage Arrears and the Mortgage Arrears Resolution Process.

The Inter-Departmental report identified reform of personal insolvency law as a critical measure to tackle mortgage distress. The Minister for Justice and Equality has now undertaken extensive work on the development of a Bill to bring forward the necessary legislative provisions in order to modernise the law in this regard. This is being advanced as a priority matter.

In line with the report's recommendations, the Department of the Environment, Community and Local Government has commenced work on the implementation of an initiative to progress the mortgage-to-rent concept. The initiative will operate on a pilot basis initially and work is now well advanced with a lender and an approved housing body to progress the initiative as soon as possible.

My own Department is undertaking a process of direct engagement with banks on the development of voluntary approaches by mortgage lenders. In addition, the Central Bank has also asked mortgage lenders to produce detailed mortgage arrears resolution strategies and implementation plans as a matter of urgency for submission by the end of November.

This Dáil is, of course, continuing its debate on the Inter-Departmental Report and Government has stated that it will consider and take into account the many contributions made, both inside and outside the House, to this debate in its ongoing efforts to address the problem of mortgage difficulty. Once the Dail debate has concluded, and following assessment of the points raised, I will bring proposals to Government on next steps including an implementation mechanism. This will enable the recommendations of the Inter-Departmental report to be progressed in a co-ordinated fashion in order to provide effective and meaningful solutions for those borrowers that are facing difficulties in meeting their mortgage commitments.

Arising out of the report of the Expert Group on Mortgage Arrears published late last year, lenders representing the majority of the market have already implemented or indicated their willingness to implement a Deferred Interest Scheme (DIS) or a variation of it as recommended by the Expert Group on Mortgage Arrears and Personal Debt in late 2010. A DIS is intended to allow borrowers, subject to certain criteria being satisfied, 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.

Financial assistance is available to eligible claimants under the Department of Social Protection's Mortgage Interest Supplement Scheme. People in debt or in danger of getting into debt can avail of the services of the Money Advice and Budgeting Service. This is a national, free, confidential, and independent service.