Paul Murphy (Dublin South West, Socialist Party)
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21. To ask the Minister for Finance his views on the level of mortgage arrears and on the increased rate of repossessions; and if he will make a statement on the matter. [4694/15]

Michael Noonan (Limerick City, Fine Gael)
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This Government tackled the issue of mortgage arrears head on.  We overhauled the systems and structures to support customers in arrears to find solutions.

The Deputy will be aware that the Government's Strategy to address the problem of mortgage was formulated in response to the recommendations of the Keane Report (2011) and the main elements of it are:

- Engagement with the banks to develop appropriate measures for their customers in mortgage arrears;

- Personal insolvency law reform and implementation;

- Mortgage to rent; and

- A Mortgage Advisory function 

The Strategy is working, as evidenced by the monthly improvements in the mortgage restructures data collected by my Department officials. The situation at end November shows that total mortgage accounts in arrears(all arrears 1 day past due) now stand at 91,963.  The number of Principal Dwelling Home accounts in arrears of greater than 90 days and not restructured has fallen by almost 27%at end of November 2014 when compared to the state of play at end of August 2013. During November 2014 there was an increase of 2,551 permanent mortgage restructuresover the previous month. The number of mortgage accounts in arrears of greater than 90 days continues to fall, decreasing by 1,879to 64,196 accounts at the end of November 2014.

The strong view of the Government is that, in respect of co-operating borrowers under the Mortgage Arrears Resolution Process, repossession of a person's primary home should only be considered as a last resort and that every effort should be made to agree a sustainable arrangement as an alternative to repossession.  Even after the commencement of the legal process, it will be possible for lenders and borrowers to re-engage and it will be in the best interest of many parties if that can and does happen.

There is no doubt that the issue of longer terms arrears remains the biggest challenge.  Many customers are finding solutions when they engage with their lender. Data published by the Central Bank in December shows that just under 110,000 principal dwelling home mortgages (PDH) were classified as restructured at the end of quarter 3 in 2014.  Of these restructured accounts, 83% were deemed to be meeting the terms of their current restructure arrangement.

This Government has put in place a number of initiatives to assist homeowners in difficulty.  Borrowers in difficulty must engage with their lender as early as possible in order to identify the best solution to their debt situation.  This will afford them the protection of the Code of Conduct on Mortgage Arrears (CCMA) and ensure that the resolution arrangement that is finally agreed is both affordable and sustainable.Of course, the Central Bank is also working to ensure that banks are fully complying with the codes of conduct.

In addition, the Money Advice and Budgeting Service (MABS) provides independent advice and practical assistance to those in debt and I would advise anybody who is struggling with unsustainable debt to contact them as soon as possible.

The Insolvency Service of Ireland (ISI) also has a role in restoring citizens who are insolvent to solvency in a fair, transparent and equitable way and will help people to address their problems.  It is essential that the banks and customers engage with each other.