Mick Wallace (Wexford, Independent)
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To ask the Minister for Finance his plans to tackle the growing problems with mortgage arrears; and if he will make a statement on the matter. [14059/13]

Michael Noonan (Limerick City, Fine Gael)
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The Government is very aware of the significant difficulties some homeowners are facing in meeting their mortgage obligations and it has put in place a comprehensive strategy to address the problem focusing on four main distinct areas:

Innovative Personal Insolvency Reform: Personal insolvency reform was identified by the Keane Report as a catalyst for addressing the mortgage arrears problem and it indicated that without an effective insolvency system the mortgage arrears problem will not be resolved. The introduction of the new Personal Insolvency Act provides new statutory insolvency frameworks to allow debtors and creditors reach arrangements on unsustainable mortgage and personal debt. The legislation provides a legal framework for the resolution of mortgage arrears, as well as other personal debt, and it will provide certainty for borrowers and lenders alike about the consequences of non-payment and failure to reach agreement. It does not preclude, however, borrowers and lenders reaching bilateral agreements to address mortgage or other debt difficulty.

Mortgage Arrears Resolution Strategies: As announced last week, the implementation of the mortgage arrears strategies has further intensified with the Central Bank now setting time bound and measurable targets for the main banks on their progress in resolving, on a durable basis, the position of their mortgage customers who are in arrears on their mortgage. The “Keane Report” has already outlined a number of possible options that can be considered by banks to provide a sustainable solution for a mortgage in difficulty on a case by case basis.

Comprehensive Advice and Guidance: In addition to existing arrangements, the Government has introduced a range of additional information and guidance resources to assist mortgage holders through what can be a difficult and stressful process. A dedicated website, www.keepingyourhome.ie , has been put in place to provide general public information on mortgages arrears issues. In addition, there is a Mortgage Arrears Information Helpline, which is established under the aegis of the Citizens Information Board, to provide more tailored information to individual callers. Finally, a panel of accountants has been put in place to provide “one to one” independent advice to borrowers who have been provided a long term forbearance resolution offer by their lender in respect of a mortgage on their primary home. All of these information services are provided at no direct charge to the users of the service.

Keeping families in their homes: As a social housing response, a “mortgage to rent” scheme is now in place on a nationwide basis. This option will be available to households with unsustainable mortgages and who would qualify for social housing support and meet other appropriate criteria and will allow the family, in the context of an agreed resolution to an unsustainable mortgage, to remain in their home.