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The Ulster bank big sell off .. 900 distressed owner-occupier mortgages, 2000 buy to let mortgages

robut

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Ulster Bank to sell off 900 distressed home loans - RTÉ News

Ulster Bank is to sell off 900 owner-occupier mortgages that are on the brink of repossession.

Typically mortgages of this kind are bought by foreign funds at substantial discounts. How the homeowners will be dealt with will be up to the buyers of the loans.

95% of the mortgages are two years or more in arrears.

The bank also said it will sell about 2,000 buy-to-let mortgages.

The loans are part of a larger portfolio which has a face value of €2.5 billion.

Two-thirds of the portfolio are comprised of commercial loans, mostly lent to small businesses that had engaged in some property development.

About 5% of the loans were lent to farmers ..
Alot to digest in there. Spans alot of areas of society. I realise alot of this is distressed stuff & the like, some might say about time its being dealt with one way or another BUT:

- What are the consequences of this for all of us?
- 900 potential extra families onto the housing list / taxpayer to sort
- closed SME businesses & unemployment also
- No doubt this is just a start & other banks will follow?
- Anything else?

Maybe I am being melodramatic here. BTW I am not saying people should get an easy ride. Yes people did make bad choices here. Moral hazard etc etc.

So lets hear P.IE peeps opinion & thoughts as to what will happen here with this ..
 
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storybud1

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When loans like this are sold at a discount the scope for kickbacks and crony appointments are huge. But it will be grand, it is a bank, full of really honest and trustworthy guys and gals who know exactly what they are doing and have the Country's best interest at heart.

It is something to tell your children when you can actually tell them in real time about the corruption taking place in their lifetimes and nothing is being done to reign in the gangsters.
 

mr_anderson

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A tweet via Pearse Doherty on this: ( https://twitter.com/PearseDoherty )
Talk about a twit with a tweet.

95% of the mortgages are two years or more in arrears and Ulster Bank said it has had no engagement from this group of customers.
If Pearse wants to lend me money on the same terms he wants UB to operate on, then I'll take as much as he's giving.
I wonder if the 'RA were so generous ?
 

GDPR

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Talk about a twit with a tweet.



If Pearse wants to lend me money on the same terms he wants UB to operate on, then I'll take as much as he's giving.
I wonder if the 'RA were so generous ?
Congratulations! You have won the arsehole of the week award, and its only Tuesday :)
 

Socratus O' Pericles

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I was thinking it was Wednesday right enough.
 

RodShaft

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Socratus O' Pericles

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The 900 houses if at the average asking price (195k) would cost 174m. Not a goer for state to purchase without a helluva markdown.
 
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gerhard dengler

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I wonder at what value these loans were sold at?

Under ECB rules, banks across the Eurozone are obliged do deleverage their "non performing" loanbooks.

Ulster are part of RBS. Dunno if the Bank of England were behind this decision to force Ulster/RBS to deleverage.
 

mr_anderson

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I wonder at what value these loans were sold at?

Under ECB rules, banks across the Eurozone are obliged do deleverage their "non performing" loanbooks.

Ulster are part of RBS. Dunno if the Bank of England were behind this decision to force Ulster/RBS to deleverage.

The British government would have been.
The peak of the boom was the summer of 2006, so almost 10 years ago now.
As at 31.12.15, there were 88,292 PPR mortgages still in arrears.

At end-December 2015, there were 746,618 private residential mortgage accounts for principal dwellingsheld in the Republic of Ireland, to a value of €101.6 billion. Of this total stock, 88,292 accounts were inarrears; a fall of 4,069 or 4.4 per cent over the quarter. Some 61,931 accounts (8.3 per cent) were in arrearsof more than 90 days.
https://www.centralbank.ie/polstats/stats/mortgagearrears/Documents/2015q4_ie_mortgage_arrears_statistics.pdf

Some people here really have their head up their ar$e when it comes to repossessions.

Such loans retail for 10c to 25c in the euro.
 

gerhard dengler

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gleeful

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It might be a good idea for the state to buy these loans, repossess the homes and rent them out as council/social housing. The price on offer is probably heavily discounted.
 

mr_anderson

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It might be a good idea for the state to buy these loans, repossess the homes and rent them out as council/social housing. The price on offer is probably heavily discounted.
Ulster are selling because they don't want to go through the hassle of repossessing.
Could you imagine how difficult it would be for the state to do so ?
 

gerhard dengler

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Ulster are selling because they don't want to go through the hassle of repossessing.
Could you imagine how difficult it would be for the state to do so ?
The other side of this is that Ulster now will be required to recognise additional losses on the sale of these loans.

Granted UB have making provisions on the amount defaulted upon to date - but they'll have to provide for the difference between the net defaulted value and the eventual selling price to the vulture fund.
 

Voluntary

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It might be a good idea for the state to buy these loans, repossess the homes and rent them out as council/social housing. The price on offer is probably heavily discounted.
It's not a good idea for the state to show it's prepared to buy off vulture funds etc. This is like sending a clear signal to every other bank/vulture fund - we'll buy your stuff whatever it takes = more threats and more rapid repossessions. These houses should be repossessed and go private sale. If the state wants to provide social housing then the state should build them. Repossessions take a long time to process so State has plenty of time to build homes for these people if they've no means to pay for rental accommodation etc.

Sooner this whole mess is off the radar the better, short term pain - long term gain.
 

mr_anderson

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The other side of this is that Ulster now will be required to recognise additional losses on the sale of these loans.

Granted UB have making provisions on the amount defaulted upon to date - but they'll have to provide for the difference between the net defaulted value and the eventual selling price to the vulture fund.
It helps when you have a very generous uncle.

Ulster Bank soaks up a third of RBS's £45bn government bailout

Ulster Bank soaks up a third of RBS's £45bn government bailout - Independent.ie
 

Roberto Jordan

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Ulster Bank to sell off 900 distressed home loans - RTÉ News



Alot to digest in there. Spans alot of areas of society. I realise alot of this is distressed stuff & the like, some might say about time its being dealt with one way or another BUT:

- What are the consequences of this for all of us?
- 900 potential extra families onto the housing list / taxpayer to sort
- closed SME businesses & unemployment also
- No doubt this is just a start & other banks will follow?
- Anything else?

Maybe I am being melodramatic here. BTW I am not saying people should get an easy ride. Yes people did make bad choices here. Moral hazard etc etc.

So lets hear P.IE peeps opinion & thoughts as to what will happen here with this ..

Anodyne comment on my part but the numbers are tiny. Nothing ....insignificant. But I guess all is proportional and the auld sod is a small place........
 

RasherHash

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The 900 houses if at the average asking price (195k) would cost 174m. Not a goer for state to purchase without a helluva markdown.
When you consider the sort of waste government is infamous for it wouldn't be such a bad idea.
 


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