Last edited: Dec 6, 2017 Central Bank study issued today: An Economic Letter entitled Borrower-lender engagement during the Irish mortgage arrears crisis looks at the issue of borrower-lender engagement in considering why, despite some progress, mortgage arrears rates, particularly among those in arrears of more than two years, remain stubbornly high in 2017.The key findings are: · New estimates show that 61 per cent of borrowers in deep-arrears had engaged with their lender by the end of 2016. This figure rose to more than 70 per cent for those with arrears of less than 720 days. · Unlike engaged borrowers with lower arrears balances, those in deep arrears in the majority received temporary modifications in the past that have since elapsed. This pattern points to the important role of permanent, sustainable restructuring arrangements in the resolution of the mortgage arrears crisis. · Engaged borrowers are likely to have larger loans than non-engaged borrowers. In general, however, the explanations for non-engagement are likely to be more idiosyncratic and borrower-specific than anything identifiable in the data. Notes: For the purposes of this research, an \Engaged Borrower" is dened as any mortgage for which we see in the data any of the following: 1.The loan is marked as being permanently modied. 2.The loan is marked as currently being in a temporary modication. 3.The loan is marked as having completed a Standard Financial Statement (SFS).