# 53% of  BoI customers over two years in arrears are paying nothing at all



## Brendan Burgess (17 Nov 2016)

From today's Oireachtas Finance Committee 

Burke
Slide 38 - borrowers 1358 over 2 years in arrears. The majority will require social housing.
Could you not do a write-down


Boucher /McLoughlin
It's 1.8% of our mortgages compared to 5.5% for the industry
726 are paying nothing at all
267 are paying less than 50%
Their average contractual mortgage payment is €926 vs €1,060 for rent
If they get social housing, they have to pay something. They are paying us nothing.


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## Delboy (17 Nov 2016)

How long have the 726 being paying nothing for I wonder?
Great little country


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## MrEarl (17 Nov 2016)

Hello Mr. Burgess,

That point about 726 people paying nothing has to be attended to immediately imho.  By all means, if there are legitmate reasons why someone cannot pay anything for a relatively short period of time then you try to help them, but medium to long term the property needs to be sold and everyone needs to move on, imho.

As for the 267 paying sub 50%, is that sub 50% of the loan interest, or sub 50% of the overall capital & interest repayment ?  ... if it's sub 50% of the interest, then even when you make an allowance for the high SVR being charged, there's a fundamental problem and again, if it's not a short term issue, the properties need to be sold and everyone needs to move on imho.  If it's sub 50% of the capital & interest repayment, then perhaps a restructure is appropriate for a period of time.

I'm not trying to be heartless here, but these situations cannot continue indefinitely.  Unless the bank is actually put through write offs on an ongoing basis, then the debt the people owe is increasing, while the bank continues to have a significant number of non-performing loans on it's books.  Bad for all concerned !

Ultimately, I find myself wondering is there a firm action plan in place and is it being progressed, to deal with these circa 1,000 loans and if not, then why not ?


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## Brendan Burgess (17 Nov 2016)

Bank of Ireland is dealing with them far more efficiently than the other banks. 1.8% vs. 5.5%  of their loan book. 

But their hands are tied.  It takes them years to get an order for possession. 

Now we have Abhaile. So borrowers who don't want to pay anything for their housing can get another 6 months. 

Brendan


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## MrEarl (17 Nov 2016)

Brendan Burgess said:


> Bank of Ireland is dealing with them far more efficiently than the other banks. 1.8% vs. 5.5%  of their loan book.
> 
> But their hands are tied.  It takes them years to get an order for possession.
> 
> ...



Hello Mr. Burgess,

While I take your point, I would respectfully point out that two wrongs don't make a right  .... 1.8% is not acceptable, just because it's better than 5.5% for example. 

I revert to my question about whether there is a firm action plan in place and is it being progressed ? ... I've seen enough of banks to say with confidence that in many instances, little or nothing is being done over pro-longed periods for no good reason.  Sometimes the staff don't want to do the hard work, on other occassions the decision makers at the Banks can't or won't make a decision to keep on kicking the can down the road, on other occassions eveyone is in a holding pattern while they prepare for a portfolio sale etc.


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## Brendan Burgess (17 Nov 2016)

Hi Mr Earl

I have been in the courts often. I have seen lots of arrears cases. 

Bank of Ireland appears to be by far the best managed.  One hears of customers of the other banks never getting any calls about their arrears.  BoI is very proactive and determined. 

They are in court less often comparatively less often than the other banks, but when they are in court, their paperwork is ready and they nearly always seek an order. The other banks often seek an adjournment or seek an order but their files are missing stuff. 

The reality is that it's very, very difficult for a well managed lender to get an order for possession in Ireland.  Within that context, BoI does very well. 

Of course, it it were any other country, there would be no stats for people over 365 days in arrears. They would simply have been repossessed a long time ago.

Brendan


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## MrEarl (17 Nov 2016)

Points well made, Mr. Burgess.


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## Bronte (17 Nov 2016)

What is 'Abhaile'?


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## Andy836 (17 Nov 2016)

Bronte said:


> What is 'Abhaile'?



Irish for Home *gets coat*


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## MrEarl (18 Nov 2016)

Bronte said:


> What is 'Abhaile'?



Have a read of the following links...


https://www.welfare.ie/en/Pages/Abhaile---Mortgage-Arrears-Resolution-Service.aspx

http://www.citizensinformationboard.ie/en/news/2016/news20161003.html

[broken link removed]

http://www.irishtimes.com/news/soci...the-abhaile-mortgage-arrears-scheme-1.2815278


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