Brendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

78. To ask the Minister for Justice and Equality her views on a matter (details supplied) regarding repossessions; and if she will make a statement on the matter. [39454/16]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The position is that the Programme for Government contains a series of commitments in relation to housing, including a commitment to keeping families in their homes and avoiding repossessions as far as possible; establishment of a new national service to standardise supports available to borrowers in mortgage arrears; establishment of a dedicated new court to handle mortgage arrears and other personal insolvency cases; a review of the thresholds and processes for Personal Insolvency Arrangements; and a review the Central Bank's Code of Conduct on Mortgage Arrears. I will be working closely with my Government colleagues in the coming months towards achievement of these aims.

A number of measures have already been put in place with the aim of providing assistance to those finding themselves in mortgage arrears. These include:

- development of the Money Advice and Budgeting Service (MABS) as the Government’s ‘one-stop shop’ point of information and guidance for homeowners in mortgage arrears, working closely with the Insolvency Service;

- establishment and staffing of Dedicated Mortgage Arrears centres in key locations with nationwide coverage, which offer specialised expertise on mortgage debt;

- the presence of MABS and the Insolvency Service at courthouses to provide information and ‘signposting’ support for householders issued with repossession proceedings involving their homes (operating nationwide since 1 October last, following a successful pilot scheme in July 2015). This initiative is facilitated by the Courts Service, and is currently provided for all Circuit Court repossession hearings.

I should also mention the new, innovative mortgage arrears resolution service - Abhaile - which the Minister for Social Protection and I officially launched recently. The new nationwide service marks a departure in State assistance by providing free, independent expert advice and support on financial and legal issues. The objective of the Scheme is to ensure that a person who is at risk of losing their home due to their mortgage arrears can access independent expert financial and legal advice, which will help them to identify their best options for returning to solvency - with priority to their remaining in the home, where that is a sustainable option. It aims, in particular, to reach those in arrears greater than 2 years. The scheme started in late July and is already proving very effective.

Under the scheme, eligible clients are given vouchers to obtain expert advice from financial and legal advisers in order to resolve their debt issues. In addition, they can get assistance in court where needed, have access to solicitors, and get help obtaining legal aid. Since the establishment of the scheme in July, over 2,100 home owners have received assistance. A major Government information campaign will be launched in the coming weeks to raise awareness of the scheme. I believe that the introduction of the scheme will help people get out of debt and, wherever possible, to stay in their own homes and would strongly encourage anyone worried about mortgage arrears on their home to contact MABS, the Government gateway for accessing free expert help and advice.

This new service builds on the protections set out in the Land and Conveyancing Law Reform Act 2013 which assists homeowners in mortgage arrears by granting the Circuit Court specific powers to adjourn repossession proceedings in order to allow such a borrower to consult with a personal insolvency practitioner (PIP) with a view to making a Personal Insolvency Arrangement (PIA) under the Insolvency Acts and to instruct the PIP to make such a proposal. In addition, the Personal Insolvency (Amendment) Act 2015 has been enacted in order to further assist homeowners in mortgage arrears. The Act has introduced a new "court review" process applicable in cases where creditors such as a lending institution refuse a proposal for a PIA drawn up to resolve the homeowner's debts, including the mortgage on their home.

Regarding the Courts Bill 2016, currently before the Oireachtas, the position is that the Bill does not have any implications for applications for repossession of principal private residences by the banks and financial institutions. The Land and Conveyancing Law Reform Act 2013 already gives the Circuit Court jurisdiction to deal with repossession proceedings involving principal private residences, irrespective of when the mortgage was created or the value of the property. The Courts Bill 2016 does not seek to change that position in any way.