Bank of Ireland will seek to veto mortgage write-down proposals from PIPs
Published 10/04/2014 | 13:13
Bank of Ireland will seek to veto any proposal from Personal Insolvency Practitioners (PIP) featuring mortgage write down for its customers.
Chief executive Richie Boucher told the Oireachtas Finance Committee that the lender's policy is to only write-off mortgage debt in cases of bankruptcy or personal insolvency where the bank is forced to make the move.
The bank will seek to recoup the outstanding balance on a home loan even after the property has been sold to pay off the debt, he said.
Labour TD Kevin Humphreys said people would be better off bankrupt than selling their home and remaining indebted.
To date Bank of Ireland has been involved in four personal insolvency arrangements (PIA), of which it supported two and opposed another two - one of which was approved anyway, he said.
Bank of Ireland is significantly ahead of targets to restructure problem mortgages set by the Central Bank, Mr Boucher said.
Offers were made to 64pc of customers who are three months or more behind on their home loan, against a target of 50pc set by authorities.
Deals had been completed in relation to 40pc of the problem mortgages, against a target of 15pc, officials at the bank said.
The bank said 86pc of deals done are working.
Bank of Ireland chief executive Richie Boucher's pay was raised briefly as he and senior executives from the bank began presenting their latest mortgage resolution to the Oireachtas Finance Committee today.
His pay is "transparent and clearly set out," Mr Boucher said.
Bank of Ireland is the last of the four main banks coming before the committee this week.