Ken O'Flynn (Cork North-Central, Independent Ireland Party)
Link to this: Individually | In context

517. To ask the Minister for Finance to consider establishing a State-supported legacy debt resolution scheme to address unsustainable celtic tiger era mortgages that continue to impact households over the age of 50. [45600/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

There are a range of consumer protections and debt resolution mechanisms already in place.

The Central Bank of Ireland maintains a consumer protection framework including the Code of Conduct on Mortgage Arrears. Each regulated entity, be that a bank, retail credit firm or credit servicing firm is bound by this code and must consider a borrower’s situation in the context of the solutions they provide.

The Code of Conduct on Mortgage Arrears provides a Mortgage Arrears Resolution Process that sets out rules for how lenders must deal with borrowers when they fall into mortgage arrears or are in pre-arrears.

Under the Mortgage Arrears Resolution Process, regulated lenders are required to explore all options with borrowers for Alternative Repayment Arrangements to determine which, if any, is appropriate and sustainable for the borrower’s individual circumstances. Alternative Repayment Arrangements offer borrowers in financial difficulty different ways to pay their mortgage.

Abhaile is a state-funded scheme to help homeowners find a resolution to mortgage arrears. It provides free expert advice and assistance from qualified financial and legal professionals.

Borrowers can access personal insolvency services by contacting a Personal Insolvency Practitioner or through MABS.

Mortgage borrowers who are unable to agree an Alternative Repayment Arrangement and who are unsuitable for a Personal Insolvency Arrangement may be able to access the Mortgage to Rent scheme.

This is a Government scheme to help homeowners at risk of losing their homes to switch from owning their property to renting their home as social housing tenants.

I do not intend to establish a State-supported legacy debt resolution scheme in addition to the mechanisms already available.