Ireland’s largest social housing provider cautiously welcomes the announcement by Minister for Finance Brian Lenihan that AIB and Bank of Ireland will be signing up to a new code of conduct as part of their Capitalisation programmes. However, Respond! Housing Association stresses the need for systems to be put in place that will allow families in arrears to renegotiate their mortgage.
John Hannigan, Respond! Company Treasurer urged the banks to provide a lifeline to families facing repossession.
“Respond! welcomes the move by the Minister that will ensure that bankers are not the only people to benefit from the €8 billion recapitalisation plan. With almost 330,000 people unemployed in this country, there is now more of a need than ever before to help those in mortgage arrears. However, we would ask that the Government goes even further with their recapitalisation conditions to Bank of Ireland and AIB. A free legal advocacy support system needs to be put in place to which people who face repossession can access when dealing with their bank.”
Respond! notes that NIB has set aside 2% of its finances to write-down borrowings from developers. Is this being passed on to family mortgage holders? What similar arrangements will be necessary in AIB and BOI? Respond! has been calling on the Government to evaluate the recapitalisation plan for some time. The housing association asked that a moratorium on repossessions be put in place, as well as a system whereby those in arrears can renegotiate their mortgage. In addition, Respond! called on the banks to write off excessive mortgage debt.
“Respond! awaits additional information on this plan from the Minister. In the meantime, we urge that the scheme be enlarged to include not only those already engaged in legal proceedings, but anyone with mortgage arrears in excess of three months. In the last month alone, more than 36,000 people in this country have been made unemployed and they need assistance now more than ever” added Mr Hannigan. “With our head office in Waferford, we are reminded every day of the calamity that has befallen so many in Waterford Crystal; a positive response is needed. Respond! itself will open up a dedicated email address on its own Website
repossessions@respond.ie to give an opportunity to families worried about repossession to express their concerns: we hope to bring those concerns then to a wider audience and to government.’