Government insist laws to protect mortgage holders will be introduced

The Government have insisted that new laws to protect mortgage holders whose loans are taken over by vulture funds will be addressed when the Dáil returns.

Government insist laws to protect mortgage holders will be introduced

The Government have insisted that new laws to protect mortgage holders whose loans are taken over by vulture funds will be addressed when the Dáil returns.

Separately, concerns about temporary or holiday letting adding to the housing crisis will also be addressed by Housing Minister Eoghan Murphy.

The pledges come as Mr Murphy is set to meet his counterpart, Fianna Fáil housing spokesman Darragh O’Brien, next week about the crisis and amid calls for further reforms.

The sale by Ulster Bank of over 5,000 home loans to US vulture fund Cerberus this week has prompted fresh concerns borrowers may be turfed out of properties.

Figures released by the British-owned bank show that in half the home loans sold, there had been multiple attempts to restructure the loans. Furthermore, average arrears were estimated at €60,000.

David Hall with the Irish Mortgage Holders’ Association said this, for the first time, gave an insight into the real “carnage on the floor”.

He told the Irish Examiner: “What’s the bigger picture about loans that are unsustainable? And what happens if these people suddenly lose their homes?”

Finance Minister Paschal Donohoe’s department said that “different banks will have different criteria for what they deem to be unsustainable and so this is a commercial decision for each bank.”

The Government have promised to implement two proposed bills to protect distressed borrowers.

Fianna Fáil’s Michael McGrath’s bill will ensure such funds are regulated by the Central Bank. Independent Alliance minister Kevin Boxer Moran also has a bill which will give judges more discretion about ruling that families with distressed loans can remain in a family home. Progress on the former would be resumed after the summer break, said Mr Donohoe’s office.

Meanwhile, pressure is mounting on the housing minister to regulate Airbnb and restrict people letting out properties temporarily for holiday purposes.

Figures released this week show that Airbnb believes around 640,000 guests are projected to travel in Ireland using its website this summer.

But critics, including Labour’s Kevin Humphreys, claim the service is worsening the country’s already serious housing crisis. The senator said an internal department review on this had sat on the minister’s desk for six months.

In response, the minister’s department insisted the concerns about Airbnb were under consideration.

A statement added: “The minister continues to review the group’s report. He is also examining the recommendations from the Oireachtas Committee’s report on short-term lettings, and has been engaging with other relevant ministers in relation to the appropriate next steps in taking forward the proposed recommendations.”

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