Issues emerge during banks audit

The Central Bank uncovered a number of issues — including no evidence of an improvement in the borrower’s circumstances — during its audit of the banks’ attempts to tackle the mortgage arrears crisis.

Other problems encountered by the Central Bank included no clarity on the ultimate long-term solution between the bank and the distressed borrower; an absence of requisite information, such as verification of borrower income or property value; and, a lack of evidence of legal follow-up in cases counted under the legal heading.

Despite these problems, the banks’ still met the targets imposed by the Central Bank last March.