Michael McGrath (Cork South Central, Fianna Fail)
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28. To ask the Minister for Finance the progress being made under the mortgage arrears resolution programme; if he is concerned by the significant rise in home repossession cases before the courts during October; and if he will make a statement on the matter. [49202/13]

Michael Noonan (Limerick City, Fine Gael)
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The implementation of sustainable mortgage arrears strategies and solutions by individual banks for their distressed customers, with Central Bank oversight, is a key element of the Government’s overall framework to address the mortgage arrears problem. The Central Bank’s initiative, called Mortgage Arrears Resolution Targets (MART) announced last March, set time bound and measurable targets for the main banks, requiring them to systematically address their arrears book. This is a very important step to resolve the impasse on arrears. The Central Bank initially required the main mortgage lenders to propose by end-June sustainable solutions to 20% of mortgages in arrears (over 90 days). The target rises to 30% by the end of September, 50% by the end of December 2013 and 70% by end of March 2014. The Central Bank is now also requiring banks to conclude sustainable solutions with 15% of their customers by the end of this year and 25% of their customers by the end of March next year. The initial results of the Central Bank’s audit of the banks’ end of June target will be available shortly. This will provide an independent assessment on the compliance by the banks with all the MART requirements.

As the Deputy is aware, the Central Bank publishes quarterly statistics on the level of mortgage arrears. To date 79,357 primary dwelling houses (PDH) mortgages have been restructured as of June 2013 of which over 60,000 of restructured PDH accounts were deemed to be meeting the terms of their arrangement. The Central Bank has informed me that updated data for September 2013 is due for publication by the end of November.

Separately from Central Bank quarterly reports, my Department is now publishing monthly data on primary home mortgage restructures put in place by the six main lenders covered by the Central Bank’s MART. This will place more timely information in the public domain in relation to progress by the main banks to sustainably resolve mortgages in difficulty. The recently published data for the end of September shows that the number of PDH mortgage accounts in arrears of greater than 90 days has fallen from 82,624 to 81,156, a drop of 1,468 accounts.

My colleague, the Minister for Justice has informed me that there was an initial spike in the number of Civil Bills before the courts following the passing of the Land and Conveyancing Law Reform Act 2013 in July. However the Courts Service has indicated that, since the initial spike in issuing of Civil Bills, the situation has stabilised and there has been no further spike in the issuing of Civil Bills. It is however important to point out that the issuing of a Civil Bill does not automatically lead to a repossession, for example a borrower who has not been engaging with his lender may reengage following the issuing of a Civil Bill and this may lead to an alternative outcome.

The mortgage arrears problem is a major problem that needs to be resolved for the long term economic and social health of the country and the Government has now put in place a comprehensive strategy to tackle the problem .