Paul Murphy (Dublin South West, Socialist Party)
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9. To ask the Minister for Finance his views on the latest Central Bank of Ireland release "Residential Mortgage Arrears and Repossessions Statistics: Quarter 2014" (details supplied) which shows an increase in the number of mortgages in arrears over 720 days and large levels of arrears in buy-to-let loans; his views on the levels of repossessions outlined in the release; and if his Department is instructing banks to consider the housing needs of those affected by repossessions. [13104/15]

Michael Noonan (Limerick City, Fine Gael)
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The Government's Strategy to address the problem of mortgage arrears 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.

A primary aim of the Strategy is to assist as many borrowers as possible in finding solutions to their mortgage arrears problems and, where possible, to keep people in their homes.

The Central Bank release 'Residential Mortgage Arrears and Repossessions Statistics: Q4 2014' shows continued improvements in the number of PDH Accounts in arrears greater than 90 days, which reduced by 7.4% over the quarter.  This represented the 5th consecutive quarterly reduction in the number of accounts in arrears in this category.

Despite the improving trends noted above, accounts in arrears for more than 720 days have continued to deteriorate and now constitute 34% of all PDH accounts in arrears.  It is worth noting, however, that the increase in the most recent quarter was the smallest recorded in this category to date.  Furthermore, banks subject to MART recorded a reduction in accounts in arrears greater than 720 days during the quarter, the first such decline in this category to date.

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 and provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments 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. 

When borrowers engage with their lender it is usually possible to agree a sustainable restructure to address and resolve their difficulties.  Data released by the Central Bank shows that almost 115,000 mortgage accounts were classified as re-structured at the end of 2014.  This represented an increase of about 30,000 accounts over the course of 2014.

The number of BTL accounts in arrears has been slower to stabilise relative to PDHs.  BTL accounts in arrears  greater than 90 days reached 31,749 in Q2 2014, but reductions were noted over the two subsequent quarters and the Q4 2014 reduction of 7.6% was the most pronounced in this category to date.

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 update of personal insolvency solutions.