Friday, March 08 10:24:38
The Irish Brokers Association today said that the bailout money the Government has received now needs to be directed at resolving the long-term mortgage arrears issue.
Ciaran Phelan, CEO of the Irish Brokers Association commented, "The absolute number of families in arrears now seems to be close to peaking, with the short-terms actually reducing - but these were relatively easy to repair with forbearance measures. However, there's now a growing but distinctive cohort of people in long-term arrears for which forbearance measures haven't been successful - the 24 month plus category grew by 20pc (from 19,541 to 23,523) in just one quarter. Is the Government really going to sanction the repossession and rehousing of 23,523 families?"
"The onus is now on the Government, and the banks, to use the bailout money to introduce debt write-off and interest cancellation solutions. Similar to employment issues, the solutions required for long-term resolution are radically different to those aimed at the short-term," he added.
"The PIA doesn't appear to be the solution for these people as it now looks more like a 2014 initiative, with 2013 likely be taken up with recruitment, locating an office and waiting for the banks to form an agreement on the division of the assets and incomes of the financially challenged".