Last week, the Central Bank published information for mortgage arrears in the period up to December 2012. This shows that the rate at which mortgages are falling into arrears for more than 90 days is declining. The number of early arrears cases under 90 days cases has also reduced. However, the statistics also highlight the scale of the problem - 94,500 mortgage accounts for private dwellings are over 90 days in arrears and 23,500 are in arrears for over 720 days. The Central Bank has issued specific, time-bound targets for the following banks - Bank of Ireland, AIB, Permanent TSB, Ulster Bank, ACC and KBC Bank. These targets stipulate that: 1) by 30 June 2013, the banks should have proposed sustainable mortgage solutions for 20% of distressed borrowers, and 2) by 30 September 2013, 30% of cases are to have proposed sustainable solutions 3) by 31 December 2013, 50% of cases to be in hand. The targets will become progressively more demanding so that the vast majority of distressed borrowers will have been proposed such solutions by end-2014. Progress will be monitored closely by the cross-Government Mortgage Arrears Steering Group and the enhanced Cabinet Committee on Mortgage Arrears and Credit Availability and the Government will take any further actions it deems necessary. These targets are one part of the Government’s overall strategy. While the targets will spur the banks into taking sustained action, other important elements include: 1) Updating the Central Bank Code of Conduct on Mortgage Arrears to facilitate effective resolution of borrowers’ arrears situation. A consultation paper on revisions to the Code is being published today. 2) Intensive and ongoing engagement by the Central Bank to ensure that the banks continue to develop their operational capacity to deal with the mortgage arrears problem. 3) Establishing the Insolvency Service of Ireland which will facilitate insolvent borrowers and lenders to come to an agreed solution. It will enable many people to make a fresh start. 4) Enabling people to remain in their family home through further roll-out of the mortgage-to-rent scheme and developing options for a mortgage-to-lease scheme. The key message to people who are experiencing difficulties with their mortgage payments is to engage with their bank and to avail of the process in place. More information on this topic can be found on the Government’s website. Do you have any questions or comments? Please post them below.