Central Bank sets new, tougher mortgage resolution targets

[Brendan Burgess]

Central Bank sets new, tougher mortgage resolution targets

From the Irish Times

The [broken link removed] has given the country’s main lenders until next June to put in place mortgage debt solutions for 75 per cent of customers more than 90 days in arrears.


The new targets, agreed in conjunction with the EU-IMF troika, also stipulate the number level of “concluded solutions” on the banks’ books must reach 35 per cent by the same date.

Sounds as if they must make offers of 75% , and get agreement on 35%.

The only way to get a concluded solution for many borrowers will be to initiate repossession proceedings.

The State’s six main mortgage lenders - [broken link removed], [broken link removed], [broken link removed], [broken link removed] Bank, [broken link removed] and KBC Bank - now have until the middle of next year to put debt arrangements in place for 75,000 of them.

But no need at all for the following lenders, some of whose mortgage books are in much worse condition, to do anything

• IBRC - formerly Irish Nationwide
• Local Authorities
• Danske Bank
• Bank of Scotland

 

[Kine]

What exactly constitutes completing a resolution target for a bank?

The article has:

The banks can write down debt, reschedule the loan, put a new payment plan such as a split mortgage in place or repossess the home.

Is interest only for a couple of years a long-term resolution?