# Banks write to 14,000 proposing voluntary surrender/repossession



## Brendan Burgess (29 Nov 2013)

The statement issued to the press was very sparse, but the Central Bank made a presentation to the media which is attached. 

Slide 6 is the most important 

Sustainable solutions *proposed * for the six months from 1 April to 30 September 



 |PDH| BTL|Total
Restructures|17,607|3,570|21,177
Loss of ownership|17,437|8,473|
*25,910*

Total|35,044|12,043|47,087
total >90 days>|81,500|27,400"Loss of ownership" is a  proposal for voluntary sale, surrender or writing to the borrower  threatening repossession.


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## Brendan Burgess (29 Nov 2013)

*Central Bank publishes outcome of Mortgage Arrears Resolution Targets*

The Central Bank of Ireland  today (29 November 2013) publishes the outcome of the Mortgage Arrears  Resolution Targets for Quarter 2 and Quarter 3 of 2013. In line with  requirements all banks Allied Irish Banks, Bank of Ireland, permanent tsb, Ulster Bank, ACC Bank and KBC Bank  have reported sufficient proposed solutions to meet the target of 20%  proposed sustainable solutions in Quarter 2 and 30% in Quarter 3 (end  September).​ The Central Bank conducted  an audit of the banks’ Quarter 2 results which examined the banks’  processes of determining and proposing sustainable solutions against the  Central Bank’s sustainability guidelines.  A number of issues were identified which will need to be addressed by the  banks to ensure that the solutions being proposed are sustainable in the  long term.  However it was found that the issues arising would not have  resulted in any of the banks’ failing to reach the Quarter 2 target of 20% proposed sustainable solutions, given  the surplus levels submitted by the banks.​ Key issues identified include:​ 

Short-term loan modifications were proposed in some cases where there was:
 

no tangible evidence of a borrower’s circumstances improving
no clarity on the ultimate long-term solution;
 

An absence of requisite information, such as verification of borrower income or property value; and
A lack of evidence of legal follow up in cases counted under legal heading.
 Director of Credit  Institutions and Insurance, Fiona Muldoon, said “We are now starting to  see some signs of progress in addressing the significant issue of  mortgage arrears. The audit process, while highlighting some key issues which require attention, shows evidence of long-term  loan modifications being offered to borrowers who are no longer able to  afford the original repayment requirements. The latest data on mortgage  arrears is also encouraging, with indications that the level of new arrears cases is declining and an emerging pattern  of stabilisation in the numbers generally.​ “We expect that lenders  will continue to progress and develop their approaches to ensure that  future sustainability targets will be achieved.  With indications the  banks are now offering long term sustainable solutions to customers, the Central Bank continues to encourage meaningful  engagement between lenders and borrowers.”​ *Quarterly Outcomes *​ In March 2013 the Central  Bank published the Mortgage Arrears Resolution Targets framework, which  set out the performance targets for mortgage arrears resolution at six  Irish mortgage lenders. The six lenders, Allied Irish Banks, Bank of Ireland, permanent tsb, Ulster Bank, ACC Bank and  KBC Bank are required to meet targets at quarterly intervals. As at end  of September 2013 the lenders in total reported they had issued  proposals to 43% of mortgage accounts in arrears against a target of 30%

_

 |Cumulative Q2 | Cumulative Q3
Mortgage Modification |38%| 45%
PIP Appointed| 0%| 0%
Voluntary Surrender / Repossession |62% |55%_​  

 There has been a change in  the trend of proposed solutions from Quarter 2 to Quarter 3. In Quarter 2  62% of the proposals were in the Surrender/Repossession category, which  decreased to 55% in Quarter 3.​


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## Brendan Burgess (29 Nov 2013)

I had missed this line. The Central Bank thinks  that they should be repossessing more. 



> A lack of evidence of legal follow up in cases counted under legal heading.


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## Sunny (29 Nov 2013)

Brendan Burgess said:


> I had missed this line. The Central Bank thinks that they should be repossessing more.


 
I think the criticism is that banks are sending out legal letters, claiming they are in compliance with the Central Bank but not actually following through on the lettters so there is no soultion. Banks don't want to be sitting on huge piles of repossessed properties. It is costly and time consuming to manage them. The banks are still playing for time 5 years later. These letters are just a method to keep the CB off their back for another few months.


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## Brendan Burgess (2 Dec 2013)

I got a copy of the presentation made by the Central Bank to the media on Friday which I have attached to the first post in this forum. (which is a duplicate of this post) 

The statement issued to the press was very sparse, but the Central Bank made a presentation to the media which is attached. 

Slide 6 is the most important 

Sustainable solutions *proposed * for the six months from 1 April to 30 September 



 |PDH| BTL|Total
Restructures|17,607|3,570|21,177
Loss of ownership|17,437|8,473|
*25,910*

Total|35,044|12,043|47,087
total >90 days>|81,500|27,400

"Loss of ownership" is a proposal for voluntary sale, surrender or writing to the borrower threatening repossession.


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