14/03/2012

Banks Seek More Powers Over Mortgage Arrears

Banks may be given greater powers to contact customers who are in mortgage difficulty, under proposals being considered by the Central Bank.

Under the existing code of conduct set out by the Central Bank, lenders are forbidden from contacting customers who are in arrears more than three times in one calendar month.

Central Bank is seeking to review this stipulation, amid concern that some customers are not addressing their arrears problem.

Speaking in the Dáil yesterday evening in response to a private member’s motion tabled by Fianna Fáil, Minister of State Brian Hayes said the code of conduct was “an important framework that governs the relationship between a borrower and mortgage lender who is experiencing difficulty and provides a number of protections to the borrower.”

According to the latest figures from the Central Bank, almost 71,000 mortgages – around 9 per cent of total home loans – were in arrears of 90 days or more at the end of December. The revised code of conduct on mortgage arrears came into force on January 1st, 2011.

Rachel Doyle, chief operating officer of PIBA, the professional insurance brokers’ association, said any change to the rules governing contact between banks and mortgage customers would be a cause for concern.

“While we would advise people who find themselves in mortgage difficulty to engage with their banks and not to put their heads in the sand, you can not put people in a situation where they can constantly being hounded by banks.”

Last month the Central Bank said that mortgage arrears would be one of a number of issues the bank would examine this year as part of a “series of themed reviews and inspections” planned for 2012.


Related Irish News Stories
Click here for the latest headlines.

19 March 2014
Consistency Needed In Bank Handling Of Mortgage Arrears
Greater consistency is needed in how different banks handle mortgage arrears, Fianna Fáil has said.
11 March 2016
Mortgage Arrears Fall For 10th Consecutive Quarter
The latest figures from the Central Bank have revealed that mortgage arrears have decreased for the 10th consecutive quarter. According to the figures, there has been a 38% drop in arrears, which represents 54,000 plus mortgages, or €9.6 billion of mortgage debt.
31 July 2013
FF Demands Update From Banks Regarding Mortgage Arrears Targets
Fianna Fáil Spokesperson on Finance Michael McGrath has called for the Minister for Finance and the Central Bank to ensure the banks provide an immediate update on the progress they have achieved in making offers to customers under the mortgage arrears resolution targets announced last March.
07 December 2010
New Rules Finalised For Mortgage Lenders
A list of new rules to curtail aggressive behaviour by mortgage lenders are to come into force in January, according to the Central Bank this morning.
18 October 2024
Water Supply Remains Up To Standard
Uisce Éireann has reassured customers supplied by the Vartry Water Treatment Plant in parts of Dun Laoghaire-Rathdown and North Wicklow that their drinking water continues to meet regulatory standards.