Dr. Austin Byrne:

A watershed moment in the distressed Irish residential mortgage crisis is upon us for a variety of reasons, with more than 100,000 Irish residential mortgages in various levels of arrears. In excess of 6% of total residential mortgages in Ireland are now in the hands of so-called vulture funds. Contrary to what we are led to believe, with regard to the common good, there is no economic, social or moral benefit in having vulture funds operating in Ireland and their presence should be discouraged forthwith.

As the economy moves through recovery, the fact is simply that this rising tide is not lifting all boats. Due to the sheer numbers of citizens affected, the medium to long-term effects cannot be measured in terms of moral and social impact, although we are seeing increases in reported cases of alcohol and drug abuse, suicide, mental illness, and marital and family breakdown. Every occupant of an affected Irish residential dwelling, whether they are a mortgagor or a tenant, is in the firing line of the stated intentions of the banks and those of the vulture funds which will ultimately own these properties. The banks are, in turn, under increasing pressure from the ECB to address their distressed loan books.

The question I would ask all Members of both Houses of the Oireachtas is what side they are on - that of the common good or that of the vulture funds? The National Housing Co-operative Bill 2017 proposes a two-pronged approach to the issue of mortgage arrears. The first concerns legal matters and the second addresses financial aspects. When both these areas are consolidated, the real success will be measured in the numbers of families who remain in their homes, regardless of their status as borrowers or tenants.

Several adjustments to existing legislation are proposed to enhance the ability of the courts to deal with applications for possession and sale of property-securing defaulting loans in a fairer, more transparent way and to eliminate the practice of bundling large numbers of loans into portfolios for sale to vulture funds, while at the same time ensuring that where an order for sale of a property securing a defaulted loan is granted by the court, it is managed to ensure the best possible outcome is achieved for both the lender and the borrower. Additionally, increased application of relevant EU law is proposed to ensure existing protections for borrowers are recognised and considered by the courts.

The proposed legislation is potentially an all-encompassing solution to the issue of residential dwelling mortgage arrears, regardless of whether the underlying security for such loans is a family home or a buy-to-let investment property. After all, they are all someone's home. The controversial issues of strategic defaulters and moral hazard will be dealt with in detail case by case basis. In truth, the real moral hazard is in simply doing nothing. This Bill will have the effect of essentially resolving the social calamity unfolding in Ireland as a result of residential mortgage arrears.

In closing, and before I hand over to the panel of experts assembled to answer the committee's questions, I should say that as private citizens we are all entitled to the benefits that status affords each of us, but with that status comes a degree of responsibility. In my private life, my employment denotes that I am a public servant, but in reality, we are all public servants. We serve the society we live in. We cannot individually exist in a vacuum. If we want society, now and into the future, to be a fair and just society inclusive of all, we must, each of us individually, ask two simple questions in respect of the home mortgage crisis and the consequential impacts accruing from failed attempts to deal with that crisis.

If not us, then who? If not now, then when? Members and witnesses have a very real opportunity to step up and implement the comprehensive solution contained in the proposed legislation. The future effects of doing nothing will be immeasurable on many levels in terms of our society. I am privileged to have had the opportunity to make an impact and work with the excellent like-minded people here today, whom I have come to know and with whom I have forged friendships that will last a lifetime. They are, for the most part, far removed from my normal life and our paths, in ordinary circumstances, may never have crossed. Our umbrella group has collectively found the will and wherewithal to bring this critically important legislation to this point. We will continue to push for this solution but it is up to members to take a position, choose which side they are on and work with us to keep people in their homes. It is up to the members. The time is now.