Robert Troy (Longford-Westmeath, Fianna Fail)
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32. To ask the Minister for Finance how he will tackle the very high number of residential mortgages in arrears for more than two years; and if he will make a statement on the matter. [40358/15]

Michael Noonan (Limerick City, Fine Gael)
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Strenuous efforts have been made by this Government to deal with the issue of mortgage arrears. Central Bank data for Q2 2015 which was published on 2 September 2015 shows just how much progress has been made - the number of Principal Dwelling Home mortgages (PDH) in arrears continued to fall in Q2 2015, marking the eighth consecutive quarter of decline and a 22% reduction since Q2 of last year. PDH mortgage accounts in arrears over 90 days also continued to fall in Q2, the seventh consecutive quarterly decrease and also a reduction of 22% since Q2 2014.

In addition, the Central Bank September data shows the impact that has been made when borrowers engage with their lenders. Almost 120,000 PDH mortgages were classified as restructured at the end of June 2015 meaning that families can, by working with their financial institution, find a mechanism to make their mortgage commitments affordable.  Of these restructured accounts, 86.5% were deemed to be meeting the terms of their current restructure arrangement.

However the number of accounts in arrears for more than 720 days at 38,041 remains the biggest challenge. It is important to note, however, that the pace of increase in this category has reduced significantly in recent quarters with the increase in Q2 of this year being the smallest increase in this category to date.

The Deputy will be aware of the Code of Conduct on Mortgage Arrears (CCMA), which provides a strong consumer protection framework for co-operating borrowers to ensure that they are treated in a fair and transparent manner by their lender. Last May the Government also announced further measures to help indebted borrowers and to increase awareness of, and access to, the Insolvency Framework.  Building on action previously taken, the measures include:

- Reform of the Personal Insolvency framework to give Courts the power to review, and where appropriate, to approve insolvency deals that have been rejected by creditors;

- Enhancement of the role of the Money Advice and Budgeting Service (MABS).  Representatives of MABS and the Insolvency Service are now present at Court sessions to offer support and advice to borrowers who are the subject of repossession proceedings.

These new measures in conjunction with schemes which are already in place such as Mortgage to Rent can assist borrowers in their efforts to agree restructure arrangements with their lenders.

In conclusion, I must reiterate that active engagement by indebted borrowers with their lender is key to achieving a sustainable resolution, and I would urge borrowers in arrears, who have not already done so, to take that first step by contacting their lender directly or MABS for an independent assessment of their situation and advice on available resolution options.