Have your say: Banks promise Govt they won't be too mean

Have your say: Banks promise Govt they won't be too mean
Finance Minister Michael Cullen has announced the major mortgage lending banks have promised not to force delinquent customers into mortgagee sales while there is some hope of recovery. Cullen said he had exchanged letters with each of the largest mortgage lending banks which outlined their approach when handling mortgage customers who are behind with their payments. "The government is keen to ensure that the interests of those facing temporary disruptions to their income are protected," Cullen said. The banks indicated they would look at customers on a case-by-case basis, and "where there is a reasonable expectation that mortgage-servicing could be resumed within a reasonable period, they will use their best endeavours to work with borrowers to avoid forced sales where appropriate." The banks could capitalise interest or temporarily reduce servicing obligations "in order to help get borrowers get on their feet again after experiencing a financial shock."  "I welcome the assurances the bank chief executives have provided.  Responsible borrowers can count on support from their banks through the challenging international economic times that will negatively impact on us here at home over the next few months," Cullen said. What I think it might mean This appears to be a politically motivated statement of the obvious. Banks will of course try not to force mortgagee sales. It's not in their interests to force customers who are likely to be able to recover after a period.  Keeping that customer for the long term will be more profitable and less disruptive. A mortgagee sale at the moment is more likely to lead to a heavy loss. What do you think? Comments below

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