Govt in talks to take action on mortgage crisis

on 16/02/2013 08:47:35

The Government and The Central Bank are discussing plans to force banks to tackle the mortgage arrears crisis.

It is understood the proposals would see the banks forced to quickly take losses on loans in arrears - before entering a "split-mortgage" agreement.

That would see clients keep responsibility for the portion of the loan they can repay - with the segment they can't pay "warehoused" to be repaid at a later date.

Earlier this week, Central Bank Governor Patrick Honohan criticised the banks for not addressing the issue properly.