DUBLIN, Ire. (5/14/13)--The board of the Irish League of Credit Unions voted unanimously last weekend to reject a new pilot program from Ireland's Central Bank for dealing with mortgages in arrears.
The league said in a statement that concerns it had raised about the proposed framework of the plan were ignored during negotiations and that the discussions offered little in the way of meaningful relief to distressed mortgage holders (RTE and The Independent May 13).
The absence of a provision for a mortgage writeoff or write down essential to any relief plan was a "major flaw" in the proposal, the league said. The plan was written to protect the bank's capital positions and maximize its income from mortgage interest payments "at the long-term expense of the borrower," said the league's statement.
The Central Bank had been negotiating for months with regulators of banks, credit unions and credit card providers.