Homeowners adopting 'wait and see' tactic on arrears, Honohan claims
on 10/10/2013 13:57:35
In a speech today, Patrick Honohan said that while he doesn't believe there are strategic mortgage defaulters, some borrowers are not facing up to the fact that they must repay their loans.
He said the scale of the mortgage arrears crisis in Ireland reflects the absence of immediate consequences for non-payment of loans, and that this lack of consequences has created a degree of moral hazard.
The governor said some people in arrears were not facing up to dealing their problems - because of a sense of moral outrage at banks, politicians and the wider economy.