Jan O'Sullivan (Limerick City, Labour)
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266. To ask the Minister for Housing, Planning, Community and Local Government the number of local authority loans, on a national basis, that are in arrears; if there is a policy to deal with arrears, particularly when large amounts are involved; and if he will make a statement on the matter. [8492/17]

Simon Coveney (Cork South Central, Fine Gael)
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To the end of Q1 2016, there were a total of 17,696 local authority house purchase loans with a value of €1,028,153,195 outstanding. Over one-quarter (27%) of these loans were in arrears of more than 90 days. My Department publishes a wide range of housing statistics, including the number and value of local authority mortgages and a breakdown of those in arrears by local authority. The statistics concerned are available on my Department’s website at: .

Local authorities generally have been lending to house purchasers at the lower end of the income spectrum. This cohort of borrowers would, in the main, be more vulnerable to unemployment, restricted working hours and downward pressure on wage rates in lower skilled jobs.

The Central Bank’s Code of Conduct on Mortgage Arrears requires all mortgage lenders to ensure that it has in place a Mortgage Arrears Resolution Process (MARP) for handling such cases. My Department introduced guidelines for local authorities in 2012 and issued revised guidelines in June 2014. The guidance, Dealing with Mortgage Arrears – A Guide for Local Authorities (June 2014), is available on my Department’s website at:

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Extending the term of the mortgage to a maximum of 35 years and a maximum borrower age of 70, depending on the type of loan, the remaining term and the circumstances of the individual borrower, as well as adding arrears and interest to the principal amount due at the interest rate applicable to the parent mortgage, are some of the long term resolutions to borrowers in mortgage arrears distress. In the case of acute mortgage arrears distress, all homeowners also have the option of seeking to avail of the legal process now also in place to deal with personal insolvency. In addition, a Mortgage to Rent scheme, specifically for local authority mortgage borrowers, is also available as part of the MARP arrangements. The Local Authority Mortgage to Rent (LAMTR) scheme and the wider operation of MARP within local authorities are kept under regular review by my Department.

The most important step any family in arrears can take is to engage early with the Arrears Support Unit of the local authority. Supports are available and advice should be sought as early as possible. In addition, the Government has established a new Mortgage Arrears Resolution Service, known as the Abhaile Service, and operated by the Money Advice and Budgeting Service (MABS) in conjunction with the Insolvency Service of Ireland (ISI), the Legal Aid Board and the Citizens Information Board. The objective of the Abhaile Service 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 their home, where that is a sustainable option. The website www.keepingyourhome.ie contains comprehensive details of the supports available under the Abhaile Service.