Minister for Finance comments on the Interim Report by the Mortgage Arrears and Personal Debt

The Minister for Finance, Brian Lenihan T.D. and Minister for Communication, Energy and Natural Resources, Eamon Ryan T.D. today welcomed the Interim Report by the Mortgage Arrears and Personal Debt Expert Group under the chairmanship of Hugh Cooney. Minister Lenihan said the Government had accepted all of the Group’s recommendations and wanted them implemented without delay:

“These recommendations are pragmatic and capable of speedy implementation. They will result in improved communication between householders in arrears and their lenders; a more consistent assessment process by lenders of options for borrowers in difficulty and the introduction of an industry-wide Mortgage Arrears Resolution Process (MARP) including a range of forbearance measures. All of these will be of real help to those in difficulty.”

The Minister also welcomed recommendations in the Interim Report supporting significant reforms of the Mortgage Interest Supplement Scheme which have been approved by Cabinet today. These changes will allow an eligible couple where one person is in full-time employment to qualify for the Mortgage Interest Supplement. They will also allow the payment of the Supplement while a house is up for sale.

The Minister noted the commitment by the Financial Regulator to amend the Code of Conduct on Mortgage Arrears to take account of the Group’s recommendations. “I am sure the lenders will continue to play their part in upholding the Code of Conduct and in implementing the interim recommendations.”

The Interim Report addresses the more straight forward problems uncovered by the Group during its data gathering phase. “I accept, as the Report makes clear, that there are more complex issues to be addressed in the area of mortgage and personal debt. I also agree with the Report’s conclusion that any solution to the problems facing those borrowers who are facing more severe difficulties will need to be targeted and robust but also fair to those who are making strenuous efforts in these difficult times to meet their repayments. We must also be careful to ensure that any proposed solutions do not reverse the significant progress we have made in repairing our banking sector and thereby putting at risk the taxpayers’ investment.”