The Keane Report on Mortgage Arrears "A Dreadful Report"

[ang]

Update:-

There should be no blanket debt forgiveness scheme for those struggling to pay their mortgages, the now-published Keane report confirms.

The new report dealing with the escalating problem of mortgage arrears has been published by the Department of Finance.

Minister for Housing and Planning Willie Penrose will shortly launch two "mortgage-to rent" schemes.

An estimated 100,000 households are having difficulty paying their mortgages.

Work has already begun to implement key elements of the report, namely a mortgage-to-rent scheme where households in extreme mortgage distress and who are eligible for social housing can stay in their homes as tenants while the lender or a housing association effectively takes control of the house.

However the report found that a blanket debt forgiveness scheme would not be possible and instead recommends a case-by case approach.

Read more: http://www.breakingnews.ie/ireland/w...#ixzz1aYs4LOmV

Full Report:-

http://www.finance.gov.ie/documents/...agearrears.pdf

[C. Flower]

Does this mean the State will take on ownership of the houses, and responsibility for maintenance of them ?

I'm in favour of the State taking them on, in general.

[concernedparent]

Does this mean the State will take on ownership of the houses, and responsibility for maintenance of them ?

I'm in favour of the State taking them on, in general.

Ah bless your little cotton socks CF, when have you known the Government, any government to take responsibility for something unnecessary. Or something necessary for that matter.

No they will probably form a quango or privatise it out to a company ran by one of their supporters.

[C. Flower]

NAMAwinelake has looked at this report and how it was compiled and concluded that it is "A Dreadful Report."

It is an in house civil servants report, with a KPMG "overseer."

"New Beginnings" a voluntary agency, expressed concern about the way this report was made without consultation of themselves or other involved groups, when interviewed on Primtime earlier this week.

http://namawinelake.wordpress.com/20...ort-published/

NWL says that there is no costing of the very generalised proposals, and says that the issue needs to be dealt with by reformed bankruptcy legislation, that takes account of people's overall means and needs and that can give people a prospect of a debt free future.

[C. Flower]

Government Press Release on the Keane Report -

Publication of the Report of the
Inter-Departmental Working Group on Mortgage Arrears


The Minister for Finance, Mr Michael Noonan, TD, today announced that the Government had approved the publication of the Report of the Inter-Departmental Group on Mortgage Arrears. On publication of the Report, Minister Noonan stated:

“The Government’s Economic Management Council instructed that an interdepartmental group be established to consider further measures to alleviate the increasing problem of mortgage over-indebtedness.

In establishing the group, the Government set two core objectives:
· To assist those facing real difficulties to remain in their own homes where appropriate, and
· To ensure a distinction between those who cannot afford to pay their mortgages and those who choose not to pay their mortgages.
The report’s wide ranging and significant measures to address mortgage difficulties fulfils these objectives.

Work is underway to implement key elements of the report:

Minister Penrose will shortly launch two mortgage-to-rent schemes in line with the report’s recommendations. These will operate on a pilot basis initially, subject to prompt review ahead of wider roll-out. Under each scheme, households in extreme mortgage distress who are eligible for social housing will be able to remain in their homes as social housing tenants with either the lending institution or a housing association taking ownership of the property. Minister Penrose’ officials will be kick-starting this process next week.

Minister Shatter has already undertaken extensive work on the Heads of a Personal Insolvency Bill as set out in the report and these will be published shortly.

Minister Noonan has instructed the Banking Division of the Department of Finance to begin discussions with the banks to ensure speedy implementation of the measures set out in the report.

Minister Noonan said:

“This report sets out important measures to address the problem of mortgage difficulty. It is incumbent on the State authorities and the banks to fully consider these and for the financial institutions to bring forward other innovative solutions which help address this difficult and complex problem.

The Government will now propose that the Dáil have an opportunity to debate the findings and recommendations of the report and will make time for a debate next week. This will give all sides of the House the opportunity to contribute in a constructive and realistic manner to the deliberations on this important issue.”

The Minister for Finance and the Minister for Justice and Equality will form an implementation strategy to be set out at the conclusion of the Dáil debate. This implementation strategy will set out the necessary steps to put into effect all of the measures that are deemed feasible.

Ends

12th October 2011






Notes for Editors

The Interdepartmental Group on Mortgage Arrears provides a range of options within a defined framework for lenders and distressed mortgage holders to deal with what is a very stressful situation for the homeowners involved.

The main conclusions of the report are as follows:-

The group does not advocate blanket debt/negative equity forgiveness and instead indicates that the issue of mortgage difficulty can only be considered on a case by case basis having regard to the individual circumstances of each case.
While mortgage forbearance measures are appropriate in many cases, long term forbearance will not be sufficient in all cases and it will have to be recognised by borrower and lender that some mortgages are currently unsustainable and that more sustainable solutions will have to be advanced for such cases.
The report sets out a range of possible solutions for such cases and also sets out a “decision tree” approach to aid assessment of individual cases; however, the report indicates that these solutions are not intended to be exhaustive or proscriptive and that these and other solutions will need to be developed over time.
The possible solutions that will need to be advanced by banks to address mortgage over indebtedness include
· trade down mortgages
· split mortgages
· sale by agreement.
The State also has a significant role to play and the group proposes the introduction of two “mortgage to rent” social housing schemes utilising approved housing bodies and the leasing of houses by banks to local authorities in appropriate circumstances. Associated with this, the group also proposes that the mortgage interest supplement scheme should become time limited.
The report proposes that a more specialised mortgage advice service be established, that could link into MABS, to provide specialist advice and assistance to mortgage holders in difficulty to enable them consider and evaluate their options in their engagement with mortgage lenders.
Underpinning the range of possible solutions, the report also states that reform of the bankruptcy and personal insolvency law is fundamental and that without this the mortgage problem will not be resolved.

Please see the Interdepartmental report for more information and for detailed graphics.

http://namawinelake.files.wordpress....agearrears.pdf

[TotalMayhem]

an interdepartmental group be established

nuff said...

[C. Flower]

nuff said...

An interdepartmental group wrote it.

[Baron von Biffo]

This is good news for sub prime lenders but bad news for the taxpayer.

[Dr. FIVE]

Today is the first day I have seriously thought about what country I'm going to be in five years

[Baron von Biffo]

Today is the first day I have seriously thought about what country I'm going to be in five years

It'll be a land fit for bankers.

Edit: Oops, misread your post and inserted a 'sort' that wasn't there.

[C. Flower]

graphic by Japlandic via Namawinelake

A lot on this in the Sunday papers. Two bankers, Declan Keane of KPMG and 16 Civil Servants wrote the report.

Pat Rabitte on Marian Finucane's programme is stoutly defending the whole thing. No reason to have MABS, or mortgage holders, or New Beginnings, involved.

http://namawinelake.files.wordpress....agearrears.pdf

I agree with NWL that radical reform of bankruptcy law is what is urgently needed.

[C. Flower]

A powerful article by Carole Hunt in the Indo today, on the bitter disappointment of people who voted FG for the prospect of up to €166 a month mortgage relief.

Is she shaking a big green stick at them at the end there ?

http://www.independent.ie/opinion/an...c-2907433.html

[morticia]

I suspect there may be serious discontent at the lack of fulfillment of that promise...

[concernedparent]

I suspect there may be serious discontent at the lack of fulfillment of that promise...

That maybe no harm.

The government have been coasting along on the wave of change of power but it has shown itself to be worth nothing. The exact same as its predecessor.

Good article by Shane Ross in today's Sindo.

[Dr. FIVE]

Good bit from Stephen Donnelly here

http://www.thejournal.ie/readme/colu...not-for-banks/