FLAC seeks input on mortgage arrears policy

HOMEOWNERS who have fallen behind with their mortgage payments are being urged to contribute to the Financial Regulator’s ongoing efforts to re-draft policy in this area.

Free Legal Aid Centre (FLAC) director general Noeline Blackwell said the public is being given a “rare chance to contribute its views on how these arrears are handled in future”.

“Every day through its telephone information line and advice centres, FLAC hears of the distress and despair felt by people in difficulty with mortgage arrears as well as other forms of debt. FLAC is seeking a holistic approach to debt which will take into account the totality of a person’s debt situation,” said Ms Blackwell.

“The regulator has asked for input from interested parties. There is no one more interested than the members of Irish society in how mortgage arrears problems are handled.”

Anyone interested in contributing to the new code of conduct can answer questions posed by the regulator and posted on the FLAC website. FLAC has also added other questions which it feels will add to the consultation process.

FLAC intends collating all responses by September 1 and will then present them to the Financial Regulator by September 3.

Proposals in the Financial Regulator’s consultation paper published earlier this month include the development by lenders of a more structured process for borrowers if they are in difficulty with mortgages on their family homes. It will also require lenders to engage to some extent with those who contact them in anticipation of future difficulties. If adopted, the proposed code will prohibit lenders from initiating repossession proceedings while reasonable negotiations are ongoing, or where a borrower is adhering to the terms of revised arrangements.