Tommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

137. To ask the Minister for Finance if his Department is examining the possibility of releasing funds for distressed mortgages; and if he will make a statement on the matter. [17455/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware, the Government has put in place a broad strategy to address the problem of mortgage arrears and family home repossessions.

This has included an extensive suite of interventions designed to address the problem including specific Central Bank targets for the banks through the Mortgage Arrears Resolution Targets (MART), the Code of Conduct on Mortgage Arrears, extensive recasting of the personal insolvency legislation, the provision of advice through Department of Social Protection-led initiatives and the mortgage to rent scheme which is designed to assist borrowers in an unsustainable mortgage position to remain in their homes through the involvement of social housing agencies.

The effective management of the mortgage arrears issue 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, the Government is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions.

Tommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

138. To ask the Minister for Finance the regulation that is taking place of mortgage providers transferring mortgages in arrears and distress; if terms and conditions agreed with mortgage providers, such as the mortgage-to-rent scheme, must be transferred to a new mortgage provider; and if he will make a statement on the matter. [17458/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.

The Bill was published in January and second stage of the Bill was taken in the Dáil on 4 February. Since then, my officials have been in contact with the Central Bank and with the Office of the Attorney General to further progress the legislation. The Bill will continue its progress through the legislative process and I look forward to further discussion of the Bill at Committee Stage.

The Mortgage to Rent Scheme comes under the aegis of my colleague the Minister for Environment, Communications and Local Government. I understand that there is no criterion under the Mortgage to Rent Scheme that would prevent a household remaining in the scheme even if mortgage provider changes. However it is a matter for the mortgage provider to agree that a property is suitable for inclusion in the scheme in the first place. There are then other eligibility criteria, in respect of household income, property size, household need and value of the property, which are applied independent of the mortgage provider. The purchase of properties under the Mortgage to Rent Scheme are financed by an Approved Housing Body (AHB) using a combination of State funding and the Ahab's own private finance arrangements.  This financing remains in place independently of the household's mortgage provider.