Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Social Protection the reason financial brokers were excluded from the recently announced advisory service for mortgage holders; if there will be a review prior to the June 2013 review; if not, will there be an opportunity for an evaluation of a small number of cases to ensure that the service is working and does not need any additional professions to be included; and if she will make a statement on the matter. [41745/12]

Joan Burton (Dublin West, Labour)
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I recently announced a three-phased approach to establishing a comprehensive Mortgage Arrears Information and Advice Service to provide the necessary supports to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two involve the enhancement of the website www.keepingyourhome.ie and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears.

The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main recognised accountancy institutes in Ireland who have agreed to participate and support this independent service.

When a lender is proposing longer-term mortgage resolutions, the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and that, if the borrower wishes to avail of this option, that the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice.

An operating protocol for the provision of this advice has been agreed between the main recognised accountancy bodies and the lenders. The general scope of the advice will be limited to the borrower’s principal private residence.

The advisory framework has commenced with practising accountants because they already operate within a regulatory regime which includes qualitative oversight by their regulating bodies and in these circumstances it was possible to establish the advisory framework for people with mortgage distress within a relatively short timeframe.

There is nothing to inhibit other financial intermediaries from continuing to give advice on mortgages as requested by borrowers. While the advisory framework will be monitored on an on-going basis, it is not intended to conduct a formal review of the scheme before the due date of June 2013. At this time, other interested parties who meet the criteria in terms of qualifications, experience, independence, professional indemnity insurance, etc., may be considered for inclusion.

The accountancy bodies have notified their members about the new service and a panel is available on a county by county basis on the website www.keepingyourhome.ie.

Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Social Protection if the Professional Insurance Brokers Association were consulted at any point prior to the launching of the new advisory service for mortgage holders; and if she will make a statement on the matter. [41746/12]

Joan Burton (Dublin West, Labour)
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I recently announced a three-phased approach to establishing a comprehensive Mortgage Arrears Information and Advice Service to provide the necessary supports to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two involve the enhancement of the website www.keepingyourhome.ie and the establishment of a Mortgage Arrears Information Helpline within the Citizens Information Board both of which focus on the provision of comprehensive mortgage arrears information in particular to people in arrears or pre-arrears.

The third element of the service is the provision of independent financial advice to mortgage holders who are being presented with long term mortgage resolution proposals by their lenders. This advice will be provided by a panel of accountants drawn from members of the main recognised accountancy institutes in Ireland who have agreed to participate and support this independent service.

When a lender is proposing longer-term mortgage resolutions, the lender will advise the borrower to obtain independent financial advice on the proposed arrangement and that, if the borrower wishes to avail of this option, that the lender will pay €250 to an accountant of the borrower’s choosing for the provision of this advice.

The advisory framework has commenced with practising accountants because they already operate within a regulatory regime which includes qualitative oversight by their regulating bodies and in these circumstances it was possible to establish the advisory framework for people with mortgage distress within a relatively short timeframe.

The Professional Insurance Brokers Association was not consulted in advance of these arrangements. There is nothing to inhibit their associates, or other financial intermediaries, from continuing to give advice on mortgages as requested by borrowers. The advisory framework will be monitored on an on-going basis and it is intended to review the operation of the framework in June 2013 at which point other interested parties who meet the criteria in terms of qualifications, experience, independence, professional indemnity insurance, etc., may be considered for inclusion.

The accountancy bodies have notified their members about the new service and a panel is available on a county by county basis on the website www.keepingyourhome.ie.