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THE MASTER OF the High Court Edmund Honohan has written a new bill which would give greater powers to the State’s financial and legal support services and stronger protections to people who are in mortgage arrears.
Honohan in his courtroom has been critical in the past of the behaviour of banks towards financially distressed customers and has on a number of occasions called out the government for failing to offer real solutions to repossession and eviction.
The bill, which was written by Honohan with input from academics and legal experts, will be lodged with the Ceann Comhairle’s office by Fianna Fáil’s John McGuinness tomorrow morning.
Entitled the National Housing Co-Operative and Fair Mortgage Bill 2018, it focuses on four main proposals to address the current crisis:
The bill points out that there are legal rights that are currently in conflict, such as a bank’s right to recover possession of a property versus the mortgagor’s right to fair treatment where non-payment is for reasons outside their control.
“There is an acute shortage of alternative accommodation anywhere and, in most cases, no alternative accommodation at all within a reasonable distance of such dwelling,” it notes. It also claims that despite public policy to keep families in their homes, the insolvency processes have proved to be “largely ineffective” in resolving debt issues without the sale of the debtor’s home.
If enacted, the legislation would give powers to the Abhaile scheme to make binding orders including the payment of interest only for a fixed period, the extension of the mortgage period, the deferment of payments or the fixing of interest rates.
It would also allow the body, which currently focuses on providing free legal and financial advice vouchers to people in debt, to order that a mortgage-to-rent solution is implemented.
The function of the new housing co-operative society, according to Honohan’s bill, would be to acquire housing that is at rick of repossession and redirect it to a non-profit housing provider who would then rent it back to the occupants, allowing them to remain in their homes.
The bill would allow the co-operative to pursue a compulsory purchase order if the bank does not accept the offer to buy the mortgage at a written-down price.
And it would enable courts to consider factors like whether an order for possession is justifiable by reference to a pressing social need - a housing shortage, for example.
Honohan has previously told people who appeared before him at risk of losing their homes to write to the Taoiseach to ask what they should do to avoid homelessness.
In December, he read out Leo Varadkar’s response to one man, which said the government is “acutely aware of the serious distress caused by mortgage arrears and is committed to assisting borrowers” to access solutions, where possible.
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Someone appears to care!
Maybe there is hope for our Republic!
@Jarlath Murphy: while I welcome this its fair to say, it’s far too little too late. But everything helps.
@Elizabeth Gregory: Agreed, one swallow doesn’t make a summer!
Just maybe, the tide is turning!!
Dare to dream?
@Jarlath Murphy: Honohan has being warning the government for years about what the banks are doing. His warnings have fell on deaf ears. So he has gone and done something the government can’t ignore.
Honohan , eh ? Now that’s not the first time I’ve heard that surname. All part of the clique that is the epitome of the establishment in this country.
This will no please FG and their vulture friends :)
The Master of the High court holds no Judicial function whatsoever. He is merely a referral officer of the court as regards to discovery of documents etc. His drafting of a bill holds no moral or legal authority. He is generally regarded as a matter of jest in legal circles.
@Colonel Grant: If our learned friends think he’s a matter of jest, I’d be inclined to listen to him.
@Colonel Grant: His drafting of the bill may hold no water but if FF and the opposition take it up then it will. They hold the majority in the Dail.
@Richard Keogh:
Dream on , this will not happen.
@Colonel Grant: Well said. He regularly exceeds his powers too. I strongly suspect this exercise has a lot more to do with promoting Ed Honohan than actually achieving anything meaningful.
Sounds like you’re as well off going into arrears and not busting your nuts to keep up on repayments
@Benny: the same people saying this are the same crying about the lack of houses. Houses should be repossessed and sold on.
@Michael Powell: unless it goes to the cooperative society
Most people that are still in trouble are in most cases post Celtic tiger business owners who morgaged their own homes to keep a business running while fraudulent banksters gave us enough rope to hang ourselves? It was never about the lending it was about the reprocession? And of course any right minded person would never agree to a contract which allows your family home to be sold to a bunch of money grabbing vultures allowed to run riot in our Ireland by the traitor Noonan im sure history will speak of the shame? It was the banks not the people
Well done Edmund Honohan. Referendum really required … https://www.change.org/p/referendum-on-family-home-special-status-in-ireland
Well done too the chief justice, he should be honoured for his efforts , notwithstanding I doo believe people must engage and pay the rent they can afford . The house agency should take over all distressed loans and keep people and families in there homes but must pay there way of course. Oh and for the government it’s a very simple equation a:vulture fund buys loan at one third of its value , repossess property sells house making 70% r so profit and payment of 0%”tax
B:housing Co op buys at a discount rents property creates jobs pays tax money stays in the economy for the life of the loan ect
Is mise
John Leonard
@John Leonard: except he’s not a judge. He’s a senior counsel. The master of the high court is essentially an administrative position. Mr Honahan has a history of over stepping his authority.
Fine Gael want to turn Ireland into a wilderness. Vultures should be shot on sight.
At least someone seems to give a shite
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