Identifying those that “can’t pay” from those that are merely “reluctant to pay” is a key operational task for the banks. No discussion of the problem of mortgage arrears should neglect this dual character: some need to brought back on track, others need alternative sustainable solutions.
Responding to escalating regulatory pressure (including the new Targets regime), banks are now working hard to meet specific targets that should bring the payment performance of their mortgage books back under control in a sustainable manner. The Central Bank will shortly publish a revised Code of Conduct on Mortgage Arrears (CCMA) to help ensure effective and appropriate resolution of each arrears case.