Proposal for State to buy out distressed mortgages held by vulture funds

Vulture funds are on a six or seven-year lifespan, while people living in homes under long-term arrears require a 25-year or 30-year solution, says business group chairman.

John Moran is chairman of SME Recovery Ireland and is a former secretary-general at the Department of Finance.

The State could play a role in solving long-term mortgage arrears by helping regular pension funds take on the distressed home loans held by the so-called vulture funds, said John Moran, who is a former secretary-general at the Department of Finance.

Mr Moran, the current chairman of business group SME Recovery Ireland, said that with interest rates at rock bottom levels, "the forgotten" problem of 10-year mortgage arrears could be tackled.