Here is the IMHO press release on today's Central Bank announcement relating to mortgages arrears resolution. This sums up my views and views I agree with.
Press release
March 13th, 2013
Government
and Central Bank mortgage plan throws borrowers to the wolves, says Irish
Mortgage Holders Organisation
Today’s
announcement that the Central Bank of Ireland will set targets for six major
banks in relation to restructuring of mortgages in arrears is a sad extension
of the failed policies of the past that have allowed Irish mortgages crisis to
spin out of control and have resulted in total mortgages arrears of
unprecedented proportions.
The latest plan lacks any
prescriptive solutions and allows banks to determine the nature, the extent and
the application of all solutions while setting the terms and conditions with
out any supervision. The plan delivers no improvement in transparency of
solutions to be offered to borrowers by the lenders and provides no protection
for borrowers against potential abuses by the lenders of their powers.
While the review of the code
of conduct is to be welcomed the review fails to deliver a meaningful
improvement to the previous practices and does not allow for an effective
protections for borrowers.
Mr Elderfield's statement
claiming that the regulator intends to remove the current cap on number of
times a bank is allowed to contact or call or visit a borrower ahead of the
review of the code of conduct is very concerning. In our view, the central bank
is underestimating the extent to which the banks are willing to go to pressure
borrowers. It also pre-empts the actual review of the code of conduct for
mortgage arrears..
The borrower is exposed and
has been afforded no protection in this plan. The lenders are incentivized to
maximize the rate of extraction of savings and income from the already
distressed borrowers prior to completion of any long-term forbearance or
restructuring agreements, thus reducing the effective relief that can be
accorded the borrower in the end.
The net effect of this plan
will be additional stress on mortgage holders and more power to banks without
an appropriate safety net or independent arbitration for mortgage holders.
The Irish mortgages crisis,
now into its sixth year, is still raging beyond any control of the authorities.
Per latest figures from the Central Bank of Ireland, 186,785 mortgages
(including BTL) in Ireland are at risk (in arrears, restructured or in
repossession), accounting for an unprecedented 25.3% of all mortgage accounts
still outstanding. The balance of mortgages at risk, relative to the total balance of all
mortgages outstanding has reached a catastrophic figure of 31.9%. With some
650,000-750,000 estimated people residing in the households with the principal
residence in mortgages difficulties, we are witnessing a wholesale destruction
of savings, pensions and wealth of several generations of Irish people.
State response to this crisis
to-date has been woefully inadequate and erring on the side of the financial
institutions. Today’s announcement offers no hope
for any meaningful change in the ways Irish authorities treat ordinary
borrowers in distress.
For further information contact:
David Hall
or
Constantin Gurdgiev
IMHO
2 comments:
Constantin said: ...we are witnessing a wholesale destruction of savings, pensions and wealth of several generations of Irish people.
People standing with eyes wide shut, watching the very destruction of their own and their childrens future by Governmet sanctioned extortion.
The solution to the crisis is simple.
But will not be done as it is not in the interests of the banks who wish to maintain money control (they want to farm the value hidden within fiat using the banking assets as mere conduits & state law /sanction of course)
The exchequer creates money in the same fashion as the banks created credit , with a stroke of a keyboard.
If the money cannot be legally used in the banking system the banks cannot inflate their conduits and therefore no point in seizing them either.
If they cannot inflate the assets and or if the assets are worthless they go bust.
Its simple really.
Ireland needs a greenback party.
Its the banks vs the people.
A straight up fight to the debt.
People need to be told the state is not as it appears to be.
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