He added that the so-called 'sustainable solutions' being offered by banks are dictated by what is in the banks' interests, rather than the mortgage holder.
Deputy McGrath said: "The mortgage arrears crisis continues to worsen with the publication of each quarter's figures. Despite government claims, there is in fact no slowdown in the rate of deterioration of the situation. We have now passed the point at which many commentators predicted the rate would peak with no sign that the situation will improve in the short term.
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"The Mortgage Arrears Resolution Targets programme was launched amid much fanfare in March but the fact that we have only had 344 split mortgages implemented out of almost 100,000 mortgage arrears cases is further evidence that the banks' thinking hasn't really changed at all. Their sole motivation appears to be preservation of their capital base and to put off dealing with the problem for as long as possible. They have been aided in this by the government allowing them to pass off sticking plaster arrangements as sustainable solutions.
"While the arrangements allowed under the Mortgage Arrears Resolution Targets programme allow the banks too much leeway, it is completely unacceptable that we have yet to see an update from the Central Bank on meeting those obligations or definitive targets for conclusion of restructuring arrangements.
"We need to urgently change direction on this issue."
(CD/JP)
