The Irish Mortgage Holders Organisation has welcomed the announcement by the Central Bank that 15% of mortgage holders in arrears above 90 days should have agreements completed by the end of December.
This new target builds up on the March 2013 objectives set for the banks by the Central Bank.
It said that it is worth noting that the Central Bank had requested offers of solutions to be made in respect of 20pc of arrears cases up to the end of June 2013. On foot of these targets, the Central Bank is now requiring that 15% of all arrears cases above 90 days should be concluded by the end of year.
"March 2013 target of 20% offers of solutions requires the banks to submit formal offers on 19,575 principal residences mortgages accounts and 6,065 BTL accounts, while the new target of 15% concluded arrangement covers 14,681 principal residences mortgages accounts and 4,549 BTL accounts. In other words, the Central Bank's combined targets are for the banks to issue formal offers of solutions to 25,640 accounts and achieve concluded arrangements on 19,230 accounts," the organisation said.
"These are ambitious targets, given the exceptionally low levels of resolution activity carried out by the banks prior to July 2013. The new set of targets with respect to 'concluded arrangements' will be even more challenging in the current environment and given the banks track record to-date. It is also important to note that again the Central Bank has not distinguished between a sustainable solution including or excluding repossession or voluntary sale. There is still no formal and definitive resolution of the unsecured debt problems, which possesses a problem for those who are facing mortgage difficulties."
