Repeal The Bank Repo Veto



Fianna Fail finance spokesperson Michael McGrath this afternoon

This afternoon

Ahead of a Dáil debate on Fianna Fáil’s Family Home Mortgage Settlement Arrangement Bill.

A bill that proposes removing the bank veto on “proposals to restructure a family home mortgage through the personal insolvency process”.

FF Finance spokesman Michael McGrath explains

“The banks have really ramped up repossession actions in recent times. The rapid rise in house prices in 2014, particularly in the Dublin region, has given them the opportunity to substantially reduce the losses they would face from selling a home in mortgage arrears.

Banks are using a variety of tactics including direct court action as well as selling off parts of their loan book, a method that essentially amounts to outsourcing of repossession

.As it stands, in the absence of a significant legislative initiative, the 37,484 people in arrears for more than two years are at a very high risk of losing their homes. That is why we are appealing to the government to accept the legislation we are bringing forward today to give families a fair chance to put in place a restructuring arrangement that will allow them to stay in their home. [Under current legislation repossession proceedings must be commenced by civil bill]

In 2014 a total of 8,164 civil bills for an order of possession were lodged in the Circuit Court. In general these cases are heard by the county registrar. While there are excellent county registrars throughout the country, their role is essentially procedural and it is not a suitable mechanism for dealing with what is essentially a very sensitive matter of an action to repossess a family home is.

Last week in the Seanad, Minister Kevin Humphreys stated “if all of these cases were to heard by a member of the Judiciary, it would have significant resource implications for the courts.”

He essentially accepted that the massive wave of repossession actions the state is witnessing cannot all be heard at circuit court level denying families an opportunity to put their case forward.

At the moment the Insolvency Service of Ireland is being completely underutilised. Fewer than 1,000 cases were processed in the first year when it was expected to be 15,000. We would utilise the insolvency structure that is already in place in order to allow people who have fallen in to arrears on their mortgage to get an order specifically relating to the family home….”


Dail To Debate FF Bill To Remove Bank Veto (Fianna Fáil)

(Mark Stedman/Photocall Ireland)


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15 thoughts on “Repeal The Bank Repo Veto

  1. Dubloony

    It take at least 2 years minimum before a bank resorts to repossession cases. Why wouldn’t people have had a chance to engage before it comes to that?

  2. Uncle Fester

    Pay for your accommodation or find accommodation within your means.

    Nobody gives a second’s thought to renters being forced out. Why should a small percentage of mortgage payers be allowed to stay in houses for free at everybody elses’ expense?

    1. scottser

      if only everything was that black and white. say you’d already put 150k into a mortgage, i doubt anyone will say to themselves, ‘yep, uncle fester is bang on – i should move out into something more affordable. how dare i think i have a reasonable case to stay and fight for my home’?

      1. Uncle Fester

        Fact is that PPR arrears are a fairly small proportion of all households. Most of the arrears is BTL and they should have been repo’d years ago.

        It’s unfortunate but if you give one guy a discount on his mortgage while his neighbour pays in full, you have huge moral hazard.

        Lose the asset and lose the debt if you can’t pay it is the fairest way.

  3. Kieran NYC

    If in 2015 (EIGHT years after the start of the financial crisis), your circumstances haven’t changed enough to the point where you even have the remotest possibility you can afford your mortgage, they’re most likely not going to.

  4. My Daddy is bigger than Yours

    so… write the debt down and keep the asset;

    that’s what the gombeen men want.

  5. My Daddy is bigger than Yours

    Really goes to show the level of though here that no one sees that people hanging onto assets they haven’t paid for increases scarcity of accommodation and drives up rents…

    1. scottser

      that’s a very small part of it. banks sitting on reposessed homes and an unregulated rental market do way more to drive up rents.

  6. Topcat

    What next for Fianna Fáil , on a day when one of Bertie’s cronies is supporting the landlord classes , this idiot supports people who won’t engage with their lenders and who when eventually faced with repossession start whinging. It is only right that people like myself who had similar investment opportunities but did not take them up should sit back , make our repayments and support discounts etc. for our gambling neighbours . This bottomhole is part of the party who started the whole thing. Can’t wait for the next election.

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