Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

An issue that was raised a while ago - I believe this is factual because I have seen it - is that banks are taking a more hard-line approach where there is equity in the property because it means the loan balance will be cleared in full whereas if they move on a borrower who has negative equity, it will crystallise a loss on their books and they are very conscious of that with stress tests coming up later this year.

I do not believe we will see any great progress by the banks until those stress tests are completed. It is worrying to hear our guests, who are on the front line representing those in mortgage distress, and the three groups earlier give the opinion that there is a lack of consistency in how people are being treated. No one expects absolute uniformity and there must be a degree of discretion but there is a fundamental lack of consistency in how people are being treated, not only among the different banks but even within banks. Depending on who one is dealing with at times, there can be a difference. We will go through what we have to go through with the banks next week but the key issues are becoming very clear. It seems we need to bring the Minister for Finance and the Governor of the Central Bank in here and put our fundamental concerns to them as to what the issues are because there is a common and recurring theme running through certainly all of what we have heard today and I am sure there will be-----