Critics claim mortgage report protects the banks

THE backlash against the Government’s plan to solve the mortgage crisis continued yesterday, with campaigners claiming it protects the banks instead of those in debt and doesn’t go far enough.

The Keane report proposes allowing borrowers to give up their homes and rent them back; warehouse part of the loan; or carry on the negative equity while moving into smaller accommodation.

Clare Dooley, founder of Smile Ireland, set up in response to the personal debt crisis, said many of the measures in the report were “unjust”.

“In relation to the proposal to ‘trade down’ and carry any negative equity with the homeowner, we feel this is unjust, as the banks may in some circumstances have indemnity bonds that were taken out to protect them against negative equity and if the banks did not take out such bonds, then they should be responsible for not protecting the risk and should bear the loss. The banks seem to be coming out on top every time at the expense of individuals who feel victimised,” she said.

The Defend our Homes League, a group of United Left Alliance TDs supported by other members of the Dáil, also hit out at the lack of blame placed on the banks for the mortgage crisis.

“We note that the banks have welcomed the Keane report on the mortgage crisis and it is no wonder.

“There is no criticism of their role in creating the crisis, and no criticism of how they are responding now to the problems of distressed home owners.”