New Government forum to oversee mortgage arrears reductions
Picture: An Interest Borrowers The Rate Pa Since The On Impact Has July Chambers Dramatic Cycle Many Jack In Finance Had Minister Shift 2022 Said
A new forum made up of the heads of various Government departments and bodies is to be established to coordinate actions to cut the more than 20,000 residential mortgages that are in long-term arrears.
The establishment of the forum is one of the key recommendations of the Mortgage Arrears Review Group published by Finance Minister Jack Chambers.
The group was established by then finance minister Michael McGrath last October in response to rising interest rates. It was tasked with reviewing the operation of the mortgage arrears resolution framework and identifying any reforms or improvements that could be made.
Long-term mortgage areas peaked in 2013 at about 125,000 accounts, representing nearly one in every five mortgages. That figure has fallen steadily over the past decade but at 6.8% today, the arrears rate remains high by international standards.
The report published on Tuesday said it was clear the mortgage arrears framework has been successful.
The group recommends that to maintain momentum and address these challenges, a forum of senior representatives from the relevant departments and bodies should be established to maintain collaboration, coordination and information-sharing with a view to further reducing mortgage arrears.
It will include representatives from the departments of Finance, Housing, Justice, Social Protection, the Central Bank, the Money, Advice and Budgeting Service (Mabs) and the Insolvency Service of Ireland.
It also recommends removing the €3m limit for borrowers seeking a Personal Insolvency Arrangement. The groups said raising the limit would increase access to a debt solution for a broader cohort of borrowers. A communications group will also examine and advise on key messages to raise awareness about arrears.
Mr Chambers said the dramatic shift in the interest rate cycle since July 2022 has had an impact on many borrowers and the report recommends appropriate reforms to assist borrowers who are experiencing distress.
"It is fortunate that Ireland has a robust consumer protection framework in place and I urge any borrowers in or facing arrears to engage with their lender in the first instance," he said.
“In parallel with various new initiatives being taken forward, the Mortgage Arrears Review Group makes several valuable recommendations to refine the options available to distressed borrowers, including further efficiencies to be made to the personal insolvency framework and enhancing the professional development of Personal Insolvency Practitioners.
"My department will continue to participate with key departments and agencies in the Mortgage Arrears Forum to oversee the implementation of these reforms and to monitor future arrears trends.”