Michael McGrath (Cork South Central, Fianna Fail)
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40. To ask the Minister for Finance his views on the reason the number of persons in long-term mortgage arrears over two years continues to rise; and if he will make a statement on the matter. [13051/15]

Michael Noonan (Limerick City, Fine Gael)
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Having regard to the recommendations contained in the 2010 "Cooney" reports and the 2011 "Keane" report, the Government has put in place a comprehensive strategy to address the mortgage arrears problem.  Together with the improving economic situation, this strategy has seen a welcome reduction in the overall level of mortgage arrears.  For example, the end 2014 mortgage arrears data, which was published recently by the Central Bank of Ireland, showed that the number of primary dwelling mortgages more than 90 days in arrears reduced by 7.4% compared to the position at end September 2014.  This represented the fifth consecutive quarterly reduction in the number of such accounts in arrears, and the decline in such arrears since the September 2013 peak is now over 20%. 

Despite this welcome overall improving trend, the number of primary dwelling mortgage accounts more than 720 days has continued to increase.  However, it is also worth noting that the rate of increase in the most recent quarter was the smallest recorded in this category to date. Furthermore, the Central Bank has indicated that banks subject to the MART process recorded a reduction in the number of accounts in arrears of more than 720 days during the quarter, the first such decline in this category to date.  Similar trends were experienced in the mortgage arrears of more than 90 days category before it peaked in September 2013.  Nevertheless, this is a significant aspect of the mortgage arrears problem that requires continued attention.  With pro-active lender engagement and borrower co-operation, sustainable resolutions or restructures are possible for many mortgages in arrears.  While some borrowers in this cohort may now be in the legal process, it should also be noted that even where legal proceedings have commenced, the Code of Conduct on Mortgage Arrears requires a lender to periodically maintain contact with the borrower to see if an alternative repayment arrangement can be agreed.  Furthermore, as the Deputy will be aware, even if the case comes before a Court, the 2013 Land and Conveyancing Law Reform Act, gives power to a Court to adjourn possession proceedings in relation to a principal private residence to see if a Personal Insolvency Arrangement could be proposed as an alternative resolution of the matter.