Willie Kealy: All carrot and no stick lets banks off hook on arrears
We have a schedule to tackle the mortgage timebomb but it lacks enforceable details, writes
BEFORE we found out what the Government had in mind to deal with the distressed mortgage timebomb that is ticking away at the heart of the Irish economy, Pat Rabbitte rubbished the idea that there would be wholesale repossessions. But of course, nobody had suggested there would be. The figure he mentioned, and dismissed, was 95,000 repossessions, which would represent the bulk of the private home loans currently in arrears of more than 90 days.
The Secretary General of the Department of Finance, John Moran, had indicated to a Dail Committee that he would like to see our repossession rate of just 0.25 per cent come more in line with what happens elsewhere – 3 to 5 per cent. Which would give us something just above 3,600 repossessions a year, compared to the present figure of around 300.
Then on Wednesday we were told of the plan.