Finance spokesperson Michael McGrath was reacting to the latest Central Bank figures which showed that 37,778 mortgages are now in arrears for more than two years, a 13% increase in 12 months.
Deputy McGrath commented: "This week the Government rejected Fianna Fáil legislation in the Dáil which would have dealt directly with this issue by removing the power of veto from the banks in relation to mortgage restructuring arrangements.
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"The problem has been allowed to worsen and it is now reaching a crisis point with a wave of repossession actions coming before the courts. At Limerick Circuit Court today, there are more than 200 home repossessions applications listed to be heard.
"Unless decisive action is taken, hundreds of families will be losing their homes in the months ahead. It should also be borne in mind that, for every family home repossessed, another three are voluntarily surrendered or sold by the mortgage holder under duress from the bank.
"The falls in early stage arrears should not be considered as cause for self-congratulation as these are typically the easiest cases to deal with. The reality is that there are still a huge number of arrears cases to be dealt with.
"In fact of the total stock of 78,699 residential accounts that were in arrears of more than 90 days, just 28.1% were classified as restructured at the end of December, compared to 29.3% at the end of September."
(CD/JP)
