The Competition and Consumer Protection Commission had a report out on options for the mortgage market.
I found this part useful:
*During the pre-consultation phase and in the responses to the public
consultation, stakeholders consistently and compellingly raised the issue of
NPLs, the risk of default and the difficulties lenders have in attempting to
repossess the security on defaulted mortgages as a significant and determining consideration for new entrants. Even where new entrants would be unencumbered by the legacy of a poorly performing back book, when faced with a choice between two markets, funders will choose the one with the less risky outcomes based on previous experience. The risk weighting attached to Ireland is perhaps even greater still given that the Irish market has not dealt effectively with the current NPL crisis, has not put in place a consistent and credible process for dealing with current NPLs and is therefore less likely to be able to respond effectively to any future crisis.
Nearly all of the respondents to this question in the public consultation agreed
that the level of mortgage arrears coupled with long and uncertain repossession policies were acting as a potential barrier to entry. While PTSB commented that loan defaults are inevitable in any lending environment and their effect is to make a market less attractive. Lender 2 went further and noted that “repossession policies and practices are a barrier to entry to the Irish market for the following reasons: access to loan security is uncertain; the timing to security realisation is protracted; associated capital and operating costs are significant. … The time to resolution in Ireland is also typically much more protracted than elsewhere. In Ireland, this ranges from 18 to 72 months. By contrast, the UK range is 9 to 12 months, with Northern Ireland and Denmark at 6 months.”*
Although the eventual conclusions are very mild.
We would therefore consider that the greater use of
suspended possession orders by the court would be worth exploring further as
a measure to bring about a more transparent and predictable process that is
aligned to European norms.
The complexity of the options described above, in conjunction with considering
the long term desired structure of the mortgage market, requires the
establishment of an Interdepartmental working group or Joint Oireachtas
Committee to examine the design and implementation of the processes
described building on the commitment in the Programme for a Partnership