Expert Group report on mortgage arrears an encouraging start
The publication of the interim report of the Expert Group on Mortgages and Personal Debt chaired by Hugh Cooney is an encouraging start in responding to those homeowners have fallen behind in their mortgage repayments according to local Fianna Fáil TD Niall Blaney TD. 13/07/10“I am hopeful that the recommendations can be identified by Mr. Cooney can 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 is also urged to make amendments to their existing 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.”
“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 it could be applied to Ireland. The Group will report again at the end of September.”
“I have heard devastating stories from constituents about how loss of work, reductions in pay and hours has impacted their ability to pay their mortgage.”
“Compassion from financial institutions must be central to their dealings with their customers who have fallen behind on their mortgage repayments, particularly where borrowers are willing to work with the lender. 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 Niall Blaney TD.
