Expert Group report on mortgage arrears an encouraging start - Corrigan

The publication of the interim report of the Expert Group on Mortgages Arrears and Personal Debt chaired by Mr. Hugh Cooney is an encouraging start in responding to those homeowners have fallen behind in their mortgage repayments according to Fianna Fáil Senator Maria Corrigan.

“I am hopeful that the wide-ranging recommendations identified by Mr. Cooney will be implemented without delay which should help to alleviate the pressure on families in mortgage arrears.”

“The Expert Group has recommended that lenders cease to charge Penalty Interest or Arrears Charges to borrowers who are taking part in an Arrears Resolution Process and that the code of conduct on mortgage arrears is amended and extended. In addition, it is recommended that a mortgage arrears and resolution process and framework be developed. The Department of Social Protection has also confirmed that it will make the recommended amendments to the Mortgage Interest Supplement Scheme.”

“The Expert Group has reported that the Financial Regulator has committed to consult with lenders regarding the recommendations and I am hopeful that they will adopt them immediately.”

“This is only the start for the Expert Group who will now move to evaluate all proposals they received. They will also look at practices in other jurisdictions and examine how they could be applied to Ireland. The Group will report again at the end of September.”

“Over the past year and more I have heard many devastating stories from people in Dublin South about how loss of employment, cuts in pay and hours has impacted on their ability to pay their mortgage.  I want to encourage anyone who finds that they are in difficulty with the mortgage payments to contact their bank or to get in touch with the local MABS office as early as possible.  It is important not to let arrears build up and for people to discuss their personal situation with their mortgage provider.”

“Compassion from financial institutions must be central to their dealings with their customers who have fallen behind on mortgage repayments, particularly where borrowers are willing to work with the lender. We must always remember that it is the taxpayer, through the State, that supported the banks in their hour of need.  No one wants to lose the family home and this must be a prime consideration for lenders.  The vast majority of people will do everything they can to save their family home and I am hopeful that the Expert Group report and their recommendations should be able to bring about measures that will assist in this,” concluded Senator Corrigan.