Bernard Durkan (Kildare North, Fine Gael)
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55. To ask the Minister for Social Protection if he remains satisfied regarding the adequacy of resources available to his Department to deal with the fallout from the housing crisis, with particular reference to homelessness arising from increasing pressure from lenders on home owners who may be in arrears; if he has calculated the likely number of extra supports required in the course of 2017; and if he will make a statement on the matter. [8407/17]

Leo Varadkar (Dublin West, Fine Gael)
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The most appropriate way for homeowners experiencing mortgage difficulties is through on-going engagement with their lender, exploring sustainable solutions within the Mortgage Arrears Resolution Process (MARP). The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, assists people who are over-indebted and need help and advice in coping with debt problems, in particular those on low incomes or living on social welfare payments. As part of its free services, MABS provides help and advice to those in mortgage arrears.

The role of MABS was expanded in 2015 with the establishment of a Dedicated Mortgage Arrears MABS service (DMA MABS) across the MABS network, to help people specifically with home mortgage arrears. There are now 32 specialist DMA advisors working across 27 locations countrywide, assisting borrowers to assess the options available to them and, where required, negotiating with lenders on their behalf. To date, the DMA service has helped almost 3,000 such borrowers.

Additionally, MABS provides a national network of court mentors who attend each listed repossession Court hearing countrywide. The mentors provide support to distressed borrowers who are facing the loss of their home and signpost them to the appropriate services. To date, over 1,300 borrowers have been referred onward to MABS advisors through the court mentor service.

In 2016, an additional initiative was announced by Government. The scheme, known as Abhaile, further extends the free services already available to borrowers through the DMA MABS service and the court mentor service. The new voucher based scheme, for which MABS is the gateway, provides access for people, who are insolvent and in home mortgage arrears, to defined levels of independent expert financial and/or legal advice and assistance, free of charge. Qualification for help under the scheme is based on the borrower being (a) in mortgage arrears on their home; (b) insolvent; (c) at risk of losing their home because of their mortgage arrears; and (d) reasonably accommodated.

The new services are provided by professionals drawn from one or more panels of solicitors, personal insolvency practitioners or accountants. Professional panels consisting of qualified and regulated solicitors and personal insolvency practitioners are already in place, and my Department is working in consultation with the professional accountancy bodies to finalise the terms and conditions for a panel of accountants.

The scheme which has been in operation since 22 July 2016, was formally launched on 3 October 2016. To date, 4,399 vouchers for services have been issued, in respect of 2,822 principle private residences. Of the vouchers issued to date, 3,490 relate to the provision of personal insolvency practitioner services, 788 for legal advice services on issues related to mortgage arrears, and 121 for legal aid services relating to Section 115A Appeals, as defined under the Personal Insolvency (Amendment) Act 2015.

The scheme is being put in place for a period of three years, at an expected total cost of €15 million, to include a communication campaign to highlight the availability of the new services, which is due to commence in the coming weeks.

In 2017, the Money Advice and Budgeting Service, which is funded by the Citizens Information Board is set to receive State funding of €24 million, including €3.5m for the Abhaile services and €3.26 m for DMA MABS.

In addition to the services targeted at homeowners in mortgage arrears set out above, my Department administers the Mortgage Interest Supplement (MIS) scheme which is currently supporting approximately 2,000 recipients who were availing of this support prior to the closure of the scheme to new claimants. Customers availing of this support prior to 1st January 2014 have been able to retain entitlement to the scheme up to 1st January 2018. The budget estimate for the scheme in 2017 is €4.1 million.

MIS recipient numbers were already in decline prior its cessation to new entrants. It is expected that existing MIS customers will continue to exit the scheme through sustainable solutions being put in place with their lenders; securing employment; or exit strategies sponsored by the Department of Housing, Planning, Community and Local Government, such as the Mortgage to Rent Scheme.

I am continuing to monitor the supports and services which the Government has now put in place to assist homeowners in serious mortgage arrears.

I hope this clarifies the matter for the Deputy.