Pearse Doherty (Donegal, Sinn Fein)
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40. To ask the Minister for Finance the progress on the programme for Government commitments on tackling mortgage arrears; and if he will make a statement on the matter. [27539/16]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware of the publication in July of the Action Plan for Housing and Homelessness by the Minister for Housing, Planning, Community and Local Government.  This Action Plan sets out how the Government plans to meet the challenging commitments made in the Programme for a Partnership Government in respect of dealing with homelessness, including how it will address the high level of mortgages currently in arrears.  Implementation of this plan is being overseen by the Cabinet Committee on Housing and Homelessness.

One action on mortgage arrears relates to a commitment to work with the Central Bank to amend the Code of Conduct on Mortgage Arrears.   I have written to the Governor of the Central Bank in this regard to request that an assessment be undertaken of the range of available sustainable restructure solutions offered by banks and non-bank entities.  I have asked that this assessment should consider in particular how the available options may impact on the distressed borrower's capacity to remain in their primary residence. Other actions to support the position of borrowers in arrears and to adjust the legal framework are being advanced separately by the Department of Social Protection and the Department of Justice and Equality.

The Deputy may have seen the latest Central Bank statistical bulletin on residential mortgage arrears, published on 13th September, which presents data to end-June 2016. This release shows the continuing improvement in the level of mortgage accounts with associated arrears, for example, 89 per cent of PDH mortgage accounts have no mortgage arrears. It is very welcome that the numbers in mortgage arrears have continued to decline across the various maturity categories and those in arrears for more than two years have declined for the fourth consecutive quarter.   However, there are still large numbers with long-term arrears, despite the various borrower supports that have been put in place.  Therefore, it is important that we now concentrate our efforts to ensure that those who remain in arrears engage with their lender to resolve their difficulties.  I understand that this will be a major focus for the Mortgage Arrears Resolution Service, being established on foot of the Action Plan for Housing and Homelessness.    I am hopeful that this new service will be instrumental in addressing and resolving those remaining cases in mortgage arrears.