Mortgage Arrears Rescue Plan Welcomed

Noel Coonan TD said the Government’s introduction of new legislation to tackle the mortgage crisis will come as a relief to Tipperary individuals and families who are fighting mortgage arrears. Details of the plan were announced recently by Finance Minister Michael Noonan.

Noel Coonan TD said the Government’s introduction of new legislation to tackle the mortgage crisis will come as a relief to Tipperary individuals and families who are fighting mortgage arrears. Details of the plan were announced recently by Finance Minister Michael Noonan.

“Some 94,500 homeowners are in arrears for more than 90 days and 23,500 are in arrears for over 720 days. This new legislation means banks must now step up their engagement with borrowers in difficulties. The Government will be working closely with the Central Bank who has set time-bound targets for the six main banks which will ensure early and measurable progress towards helping Tipperary borrowers,” explained Deputy Coonan.

The Central Banks’ targets specify that by end-June 2013, the banks should have proposed sustainable mortgage solutions for 20% of distressed borrowers. By the end September 2013, solutions for 30%, and by the end of 2013, the banks should have proposed sustainable mortgage solutions for 50% of distressed borrowers.

The targets will become progressively more demanding so that the vast majority of distressed borrowers will have been proposed such solutions by end-2014, explained the local Fine Gael TD.

Progress will be monitored closely by the cross-Government Mortgage Arrears Steering Group and the enhanced Cabinet Committee on Mortgage Arrears and Credit Availability.

“We in Government have confronted the problem of mortgage arrears and taken a series of steps to deal with it. This is in stark contrast to the inactions of the previous Government who did nothing to deal with the issue. The Mortgage Arrears Steering Group led by the Department of Finance has co-ordinated a whole-of-Government response to this issue.”

“The Government has introduced the new structures to resolve this worrying issue of mortgage arrears, which will help the people of Tipperary and nationwide. To date, we have also closed down Anglo and the IBRC, dealt with the promissory notes, brought the bank guarantee to an end,” continued Deputy Coonan.