Niall Collins (Limerick County, Fianna Fail)
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565. To ask the Minister for Housing, Planning, Community and Local Government the reason mortgage lenders are not obligated to offer the mortgage to rent scheme to distressed borrowers who are facing home repossession (details supplied); and if he will make a statement on the matter. [24710/16]

Simon Coveney (Cork South Central, Fine Gael)
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The Mortgage to Rent (MTR) scheme is a targeted intervention for households with unsustainable long-term arrears who require the greatest amount of support to meet their long-term housing needs. The MTR has been refined since its introduction in 2013 to widen the criteria to allow for broader eligibility and more streamlined administration. Despite this, the rate of uptake and progress on the scheme remains low. The reasons for this are varied and can depend on the lender, the property, the household and the ability of the Approved Housing Body (AHB) sector to increase their involvement in the scheme. To date 164 households have completed the MTR process and a further 675 cases are currently at various stages.

Rebuilding Ireland: An Action Plan for Housing and Homelessnessincludes a commitment to review the MTR scheme to assess how it can assist more households in mortgage distress. My Department will work together with the other key agents involved with the scheme, including lending institutions, and identify what further improvements or variations can be made to facilitate more households accessing the scheme. This examination will include alternative financing and contractual arrangements to encourage greater support from AHBs, greater flexibility from lending institutions in supporting MTR as an attractive option for distressed borrowers, and the feasibility of an alternative model from the purchase of these units, including the potential for a long-term lease arrangement between local authorities and financial institutions.

As outlined in the Action Plan, the Government is committed to building on recent reforms and creating a framework that removes fear and bring predictability to a difficult process for those in mortgage arrears. Through a range of actions, Government Departments and agencies will work together to find ways to encourage those who have not been able to engage, to reach a suitable long term debt resolution, and avoid repossession if possible. A new national Mortgage Arrears Resolution Service will become available which will standardise supports available to borrowers in mortgage arrears, with powers and resources needed to advise, assess, negotiate and recommend solutions. In addition, the Government will work with the Central Bank to ensure that the Code of Conduct on Mortgage Arrears provides a strong consumer protection framework for borrowers struggling with their mortgage repayments. This will include an assessment, to be conducted by the Central Bank, of existing sustainable restructuring solutions across all lenders and non-bank entities operating in Ireland to ensure that there are adequate sustainable restructuring solutions available to distressed borrowers.