New mortgage arrears procedures to be introduced?

chris85

http://www.irishtimes.com/news/crime-and-law/mortgage-holders-in-arrears-face-earlier-repossession-under-new-code-1.1437487

Ok so looks as though the area of mortgages is being tackled once again by the central bank and the banks. Main point seems to be the removal of a 12 months moratorium on legal action following exiting the MARP process. It also changes the contacting of the customer by the bank.

For me I have outlined pros and cons. I am not a homeowner by the way.

Pros

• Removal of moratorium - I think it is important that we remove this as it prolongs what in some cases is just inevitable. I think putting off repossession in cases where it never will be sustainable just leads to false hope for customer. I am in favour of this to the extent where it is a last resort which i would hope it would be here as the MARP process would be completed.
• Tracker rates vulnerable - I have also included as part of cons to be fair. I think for properties which are investment properties should be ones targeted here for removal of trackers if arrears are too far gone and mortgage looking to be recapitalise. They can be recapitalised to help but not on tracker rates. I think its important that single mortgage homeowners are protected. Especially where it is housing a family.
• Contact times - I am not happy for banks to harassess customers in arrears but I believe 3 contacts a months is too little and can allow a customer to easily put their head in the sand by avoiding a few calls and a letter each month.

Cons

• Tracker rates - As mentioned above I believe this may lead customer for which the mortgage is on their primary residence to be vulnerable to losing their tracker rate if too far gone on arrears. This is difficult for customers.
• Abuse of contact times - as mentioned in the pros I am in favour of more contact from bank but I think it is open to abuse so will be interesting to see what is deemed proportionate

Also Irish Mortgage Holders Association are claiming the Central Bank have lost credibility as consumer protectors? They are regulators of our financial system firstly.

Any thoughts on this?

handlemaster

chris85 wrote: »

http://www.irishtimes.com/news/crime-and-law/mortgage-holders-in-arrears-face-earlier-repossession-under-new-code-1.1437487

Ok so looks as though the area of mortgages is being tackled once again by the central bank and the banks. Main point seems to be the removal of a 12 months moratorium on legal action following exiting the MARP process. It also changes the contacting of the customer by the bank.

For me I have outlined pros and cons. I am not a homeowner by the way.


Pros

• Removal of moratorium - I think it is important that we remove this as it prolongs what in some cases is just inevitable. I think putting off repossession in cases where it never will be sustainable just leads to false hope for customer. I am in favour of this to the extent where it is a last resort which i would hope it would be here as the MARP process would be completed.
• Tracker rates vulnerable - I have also included as part of cons to be fair. I think for properties which are investment properties should be ones targeted here for removal of trackers if arrears are too far gone and mortgage looking to be recapitalise. They can be recapitalised to help but not on tracker rates. I think its important that single mortgage homeowners are protected. Especially where it is housing a family.
• Contact times - I am not happy for banks to harassess customers in arrears but I believe 3 contacts a months is too little and can allow a customer to easily put their head in the sand by avoiding a few calls and a letter each month.

Cons

• Tracker rates - As mentioned above I believe this may lead customer for which the mortgage is on their primary residence to be vulnerable to losing their tracker rate if too far gone on arrears. This is difficult for customers.
• Abuse of contact times - as mentioned in the pros I am in favour of more contact from bank but I think it is open to abuse so will be interesting to see what is deemed proportionate

Also Irish Mortgage Holders Association are claiming the Central Bank have lost credibility as consumer protectors? They are regulators of our financial system firstly.

Any thoughts on this?

Its badly needed the banks have their heads in the sand with arrears.

homer911

The details are in draft at the moment but are due to be finalised before the end of the month. The banks are complaining that all telephone calls with customers in arrears will have to be recorded in future - most of the banks are not geared up for this