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New rules for homeowners welcomed - Morgan

13 August, 2010

Speaking today after the publication of a new mortgage code by the Financial Regulator, Sinn Féin Spokesperson for Finance Arthur Morgan said there is an inherent danger that some homeowners will fall between the cracks and risk losing their family home.

Deputy Morgan said:

“While the proposal for a new mortgage-arrears resolution process is welcomed, where participating homeowners can avail of a one-year moratorium on repossessions, there is an inherent danger that some homeowners will fall between the cracks and risk losing their family home. We must remember that we are at a juncture where banks are trying to raise funds by whatever means.

“The one-year moratorium on house repossessions which the State’s banks agreed to last year will not be automatically rolled over as it has become subject to cooperation with lenders, while the amount of taxpayers’ money that is being pumped mercilessly into the zombie Anglo Irish bank has increased to over €24 billion.

“It is a cruel move to amend the moratorium using the argument that it was an opportunity for people to renege on payments. Indeed, it is hypocritical that so much confidence and investment has been put into the banking sector of this State and the bankers that oversaw the financial collapse, when at the crux of these banks is profit-motivation and not the provision of banking facilities and credit to people, households and businesses.

“Once again what the ordinary people of this State get is discrimination; the banking system has been afforded numerous lifelines, but one of the only supports that was made available to struggling home-owners is to cease. This is against a background where the bank guarantee was once again extended, Anglo Irish Bank has been granted a further €10 billion recapitalisation and the banks are ruthlessly increasing mortgage interest rates for people.

“Economic recovery, the recovery of job creation, investment and increased consumer confidence, will never materialise when the banking system is choking ordinary people. We welcome the move to help struggling homeowners but people’s homes must not be held to ransom by banks and duly restrictive terms and conditions.” ENDS

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