Resolving a Non-Performing Loan Crisis: The Ongoing Case of the Irish Mortgage Market

38 Pages Posted: 5 Nov 2020

Date Written: March, 2018

Abstract

The Irish banking system has in recent years experienced a large build-up in Non-Performing Loans (NPLs) during the crisis followed by a sharp reduction in the 2013-2017 period. In this article I present a recent history of the ongoing resolution of the mortgage arrears crisis in Ireland. Using a large and close to exhaustive panel data set of Irish mortgages from 2008 to 2016, I present a number of new findings on loan transitions between delinquency states, the importance of legacy effects of the crisis in explaining recent entry to arrears, the role of mortgage modification in the reduction in arrears balances, the extent of borrower-lender engagement and the financial vulnerability that remains in pockets of the Irish mortgage market.

Keywords: borrower engagement, loan transitions, mortgage modification, mortgages, Non-Performing Loans

JEL Classification: G01, G21

Suggested Citation

McCann, Fergal, Resolving a Non-Performing Loan Crisis: The Ongoing Case of the Irish Mortgage Market (March, 2018). ESRB: Working Paper Series No. 2018/71, Available at SSRN: https://ssrn.com/abstract=3723418 or http://dx.doi.org/10.2139/ssrn.3723418

Fergal McCann (Contact Author)

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

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