Bernard Durkan (Kildare North, Fine Gael)
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60. To ask the Minister for Finance the extent to which his Department continues to monitor the situation in regard to mortgage arrears, with particular reference to family homes; and if he will make a statement on the matter. [13597/15]

Michael Noonan (Limerick City, Fine Gael)
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Tackling mortgage arrears is a priority for the Government. A whole-of-Government approach has been adopted in addressing the issue with a view to maximising the level of loan restructuring arrangements and minimising the number of home repossessions.  Initiatives such as the reform of Personal Insolvency legislation and establishment of the Insolvency Service of Ireland, the introduction of a Mortgage Arrears Information and Advice Helpline and the availability of mortgage to rent scheme ensure that borrowers are assisted in dealing with their arrears.

In March 2013 the Mortgage Arrears Resolution Targets (MART) framework was introduced which set out demanding quantitative targets for mortgage arrears resolution at six Irish mortgage lenders who account for about 90% of the mortgages in Ireland. The six lenders (Allied Irish Banks, Bank of Ireland, Permanent tsb, Ulster Bank, ACC Bank and KBC Bank) were required to meet targets for proposed and concluded sustainable solutions at quarterly intervals. 

In addition, the Code of Conduct on Mortgage Arrears (CCMA) sets out requirements for mortgage lenders dealing with borrowers facing or in mortgage arrears on their primary residence. The CCMA provides a strong consumer protection framework to ensure that borrowers are treated in a fair and transparent manner by their lender, and that long term resolution is sought by lenders with each of their borrowers.  Under the CCMA a lender may only commence legal proceedings for repossession only after it has made every reasonable effort to agree an alternative repayment arrangement with the borrower or his/her nominated representative and specific timeframes have been adhered to, or the borrower has been classified as not co-operating.  

My Department and the Central Bank monitor the situation in regard to mortgage arrears on an ongoing basis.  Data published by the Central Bank in early March for end-2014 showed continued improvements in the number of PDH accounts in arrears of greater than 90 days, which reduced by 7.4% over the quarter, representing the 5th consecutive reduction the number of accounts in arrears for this category.  In addition, the number of borrowers reaching agreement with their bank to restructure their mortgage is increasing. 

Mortgage arrears is, however, an area that remains under continuous review.  More and concerted action can be undertaken by the banks to assist customers in arrears and, as the Taoiseach has previously announced, my Department is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions.