# Latest arrears and repossession data issued by Central Bank



## Brendan Burgess (17 Nov 2010)

*Latest Arrears and Repossessions Figures show 5.1% of mortgage accounts in arrears for more than 90 days                                                                           *

*Press Release 17 November 2010*

 The Central Bank of Ireland today published the latest data on  mortgage arrears and repossessions for the period ended September 2010.   The figures show that at end September 2010 there were almost 789,000  private residential mortgage accounts held in Ireland to a value of  €117.4 billion. Of these 40,472 were in arrears for more than 90 days.  Furthermore, the data shows that overall mortgage debt outstanding for  private residential mortgages decreased by €316 million since the second  quarter of 2010.


_*Arrears Data*_
 As at end September 2010, 40,472 mortgage accounts, or 5.1%, were in  arrears for more than 90 days of which 28,049, or 3.6% of the total  mortgage accounts, were more than 180 days in arrears. In value terms,  €7.8 billion was owed in relation to all accounts more than 90 days in  arrears, of which €5.5 billion was owed for accounts more than 180 days  in arrears. Mortgage accounts in arrears for more than 90 days increased  by 11.1% since the end of June 2010.
 There was an increase of 2.1% in the number of formal demands  outstanding which have been issued by mortgage lenders bringing the  total number outstanding to 5,576.  In these cases the level of arrears  amounts to €92.8 million on outstanding mortgages totalling just over  €1.2 billion.  There was also an increase in the level of outstanding  arrears cases where court proceedings had been issued to enforce the  debt/security on the mortgage. At the end of September 2010 there were  3,054 such cases which is an increase of 1% since the end of June 2010.  In these cases the level of arrears amounted to €101.8 million on  outstanding mortgages totalling €694 million.


_*Court Proceedings*_
 During the quarter ended September 2010 mortgage lenders applied to  Court to commence proceedings to enforce the debt/security in 210 cases.  This is an increase of 23.5% on the number of cases reported in the  quarter ended June 2010. These 210 cases possess arrears totalling €7.8  million built up on mortgage loans that equate to €76.9 million.
 During the quarter 156 enforcement proceedings were concluded. This  was a decrease of 27.4% on the number of cases that concluded in the  quarter to June 2010. In 98 cases the Courts granted repossession orders  which included 3 properties that were voluntarily surrendered and 17  that were abandoned. In the remaining 58 cases where enforcement  proceedings were concluded, 39 were settled either by renegotiating the  term and/or other conditions of the mortgage. The remainder of these  cases were concluded by voluntary surrender or on other terms.


_*Repossessions*_
 At the beginning of the quarter mortgage lenders held a stock of 495  repossessed residential properties. A further 81 were repossessed during  the quarter of which 22 were repossessed on foot of Court Orders and 59  were repossessed following voluntary surrender or abandonment.   
 A total of 54 properties were disposed of during the quarter. This  left mortgage lenders with 522 repossessed residential properties at the  end of September 2010.
*Arrears Data and Prudential Capital Assessment Review*
 In March 2010, the Central Bank published its Prudential Capital  Assessment Review conclusions for the Irish banks, which set base and  stress capital requirements.  These capital requirements involved an  assessment of mortgage portfolio loss rates under a base and stress  scenario.  Loss rates are not the same as arrears rates and relate to  the loss following defaults, based on an assessment of recovery values  for properties, the proportion of borrowers that resume payment and  other factors.   The arrears rates for household mortgages published  today imply a portfolio loss rate below the industry average base loss  rate used in the PCAR (and well below the stress PCAR portfolio loss  rate).

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