Brian Hayes on mortgages

Brendan Burgess

Brendan Burgess

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Brian Hayes addressed the Irish Banking Federation's Mortgage Conference today. Here are some verbatim notes I made.

We have taken a muscular approach to you (banks) on passing on the ECB interest rate reductions

The Economic Management Council is driving the things that need to be driven - getting mortgage lending on a reasonable basis going again

Should we look at

  • long-term fixed rate mortgages
  • the appropriateness of 3rd party guarantors
  • introducing non-recourse mortgages
  • insisting on higher deposits
  • replacing our love affair with property with a strong rental sector
Blanket debt forgiveness is impossible - it's crazy talk.
It would cost €14 billion of negative equity.



We are working with the banking sector in developing solutions on a case by case basis - write downs or write offs


A Key Priority of the government is to get the Personal Insolvency Bill on the statute book. The Bill will be published later this month and will be passed by the Oireachtas this quarter.



The Central Bank has a Key Role in the Mortgage to Rent Schemes.



The Mortgage Advisory Function proposed in the Keane Report has a key role. At the moment people must appeal within the bank. There should be a third party between the borrower and the lender to assess what payments the borrower can make.
Click to expand...
 
Possibly dumb question but was the focus of this conference domestic/personal mortgages or wider than that - e.g. including commercial/developer mortgages/loans?
 
Just a statement re debt forgiveness....

Its quick annoying from our position. We have been paying our mortgage in full to date as I would hope/like to continue to do so.

However in the next year I will be made redundant so I foresee some probs.
Will we loose out on this debt forgiveness because we have been paying to date.....

Like its crazy how do they decide and if you are not in arrears up to now do you loose out........... how unfair is that ..............
 
A Key Priority of the government is to get the Personal Insolvency Bill on the statute book. The Bill will be published later this month and will be passed by the Oireachtas this quarter.

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This presumably is the 5 year bankuptcy suggestion? But what do you mean by the banks are working on personal soluctions on a case by case basis? If you have the 5 year bankruptcy/involvency doesn't that sort it out?
 
Hi Bronte

Personally, I simply don't believe that the Personal Insolvency Act will become law within 12 months. A huge new apparatus must also be set up to administer debt settlement. So I would not expect that borrowers can avail of this until late 2013 at the earliest. I hope I am wrong.

So, in the meantime, the lenders will have to deal with borrowers on a case by case basis, within the guidelines of the Code of Conduct on Mortgage Arrears.
 
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