Safety Nets for Consumers in Mortgage Arrears

According to The Central Bank of Ireland, at the end of June 2019, there were 723,280 private residential (PDH) mortgage accounts for principal dwellings held. Of this, 61,901 accounts still had outstanding payments, also referred to as being in arrears. as of June, there were a total of 61,901 total accounts in arrears. Within that, over 18,000 were within 90 days overdue, almost 5,000 were up to 180 days overdue and a staggering 27,792 accounts were over 720 days overdue. However, at the end of the quarter only 1,407 homes were repossessed. So what protections do homeowners have when they are in arrears? In Ireland there are many codes and acts that are specifically designed to protect the family home from repossession.

The main code that deals with family homes, is the Code of Conduct on Mortgage Arrears (CCMA) which was put into place in 2013. The code is issued by the Central bank and relates to customers in arrears and pre-arrears situation. It does not however deal with investment properties. This code requires mortgage lenders to apply the Mortgage …

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How the Mortgage Market can Return to Normal Levels

Last week the Institute of Banking held a forum on behalf of the Irish Mortgage market in which Deputy Governor Ed Sibley delivered a speech addressing much of what is prevalent in the country today.

It began by briefing the current housing situation in Ireland. Simply put, it’s dreadful. As many are on the pursuit of suitable housing the “toxic legacies of the financial crisis” are proceeding to cause mayhem throughout the nation.

The forum started by discussing the role of the central bank. The central bank plays a much greater part in the overall mortgage market than one may think.

It is up to the central bank to ensure that “the economic and social good of mortgage provision is prudent, sustainable, and that the best interests of consumers are protected. “

The central bank has had to take extensive interventionist movements in the Irish mortgage market since the financial crisis as Ireland typically experiences extreme economic and human hardships when these certain risks arise.

In order for the mortgage market to function properly, consumers …

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Drivetime: ESRI property report, November 2017

We spoke to Mary Wilson on RTE’s ‘Drivetime’ show about the ESRI Report which stated that property prices would continue to rise for several more years into the future. We know of no significant measure that will reduce the upward momentum of prices at present. In a worrying sense you also don’t see any yield compression – that means that as prices are rising so are yields, this typically indicates a normal relationship with prices and yields (in a bubble yields often drop as the toppy capital prices far outweigh yields).

 

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Sunday Independent: We must speak to banks in language they understand and make them pay price

This is our article that appeared in the Sunday Independent when Karl Deeter was covering a column for Charlie Weston on the 5th of November.

We need to speak to banks in the language they understand, not the language they ‘tell us’ they understand, but the actual language they speak. That language is the language of money.

The ongoing tracker scandal doesn’t cover many of the mortgage holders who lost trackers – many banks took them away from landlords as a part of granting them longer interest-only periods and with some of the biggest institutions these borrowers aren’t covered.

While some may have a hard time feeling pity for landlords, I would remind them that you can’t delight in their financial pain then scratch your head when they jack up rents and squeeze tenants for all they can in order to pay the new higher cost of lending.

Banks are as big a cost to this country as many aspects of public health, we spent more bailing out banks than we did on curing cancer in the last eight years.

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Who provides mortgages in Germany and who are the largest providers?

The provider of mortgages in Germany is always a banks. You usually use your bank where you already have your account because they can make you a better offer with better conditions. But there are also websites where you can compare different providers.

In order to clarify this question, the “Who is Who” of the real estate financiers in Frankfurt is gathered once a year. Max Herbst, owner of the FMH financial consulting and grand seigneury of the German bankers, lends the FMH Award. For the past 25 years, Herbst has been analysing the conditions for real estate loans and has regularly selected the best suppliers of the year for four years.

A total of 14 members of the Board of Directors and eight directors and department heads had been present, including Wolfgang Müller, the board of BBBank, Michiel Goris, CEO of Interhyp, or Dieter Pfeiffenberger, CEO of BHW Bausparkasse. An award will be awarded to those who, with their Baufi offer in the 50 weeks of last year, had the highest average value of their category. For comparison, Herbst …

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The Times: Maybe I’ll buy a home after the apocalypse

We were mentioned in the Times of Ireland recently in an article on housing crashes “It seems we’re due another property crash, that’s if the Organisation for Economic Co-operation and Development and financial adviser Karl Deeter are anything to go by. Both said in the summer that Ireland was at risk of another housing bubble and subsequent bust, with the latter going so far as to pin the date to sometime in the early 2020s”.

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How does the German mortgage market work?

The German mortgage market is facing a complex period with increasing competition and a smaller population that is eligible for a mortgage because the country is rapidly aging. Of the more than 82 million inhabitants, 50 million in the age group are 20-64 years old. But in 13 years, in 2030, there will be only 34 million Germans who are young enough to receive a mortgage.

Although Germany is the largest mortgage market in Europe after the United Kingdom, the German housing market is different from the rest of the EU market. According to Ilse Helbrecht and Tim Geilenkeuser from the Humboldt University in Berlin, the Germans feel much less committed to their own house than the British, Italians or Spaniards.

Only slightly more than half of the families own the house in which they live. The main reasons for this are a large range of affordable and high-quality rented apartments and a tax system which is not preferred by tenants. Some provinces have set up incentive schemes for first-time buyers, but they are small businesses. Mortgages are offered by …

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How Do American Mortgages Work? Part 2: How the Secondary Mortgage Market was Created

Like the housing bubble in 2008, there was a growing popularity in the residential housing market which therefore created a housing bubble throughout the 1920’s. Before the crash, there were four common financial institutions to obtain a mortgage from: commercial banks, life insurance companies, mutual savings banks, and thrifts. These would typically have 5 year balloon loans or 10 year amortization loans with families having a hybrid of the two loans.

The Great Depression started by a stock market crash in 1929, there was a huge economic downfall that lasts for 10 years spread throughout the Western world filled with great disparity and no work. By 1933, the economy fell 27%, unemployment reached 25%, and wages fell 42%. The Great Depression was not just affecting Americans but the banks as well. Laws preventing banks to invest their client’s deposits were not in existent yet so a majority of the banks’ money were in investments. When the stock market crashed the banks’ money went along with it. With the Economic downfall left little to no income for most of the families, …

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Savings of €635 a year to be made in Mortgage Protection

We were mentioned in an article by Charlie Weston writing in the Independent about mortgage protection. The point was raised (figures supplied by the Competition and Consumer Protection Commission) that savings of up to €635 were possible.

The parts mentioning Irish Mortgage Brokers are what follows next: It’s normally done on a “joint life, first event” basis which means that if two people take out the policy and die simultaneously it only pays out once and the sum is usually engineered to cover only the balance of the loan.

It does this because it’s created as a “decreasing-term” policy, which means the amount it pays out decreases over time, the same as your mortgage does as you pay it.

It has a set term, in line with the mortgage term, according to Karl Deeter of Irish Mortgage Brokers.

So if you take out a mortgage for €250,000 over 25 years then this policy should track it fairly closely, so that if the policy holder or holders die the mortgage is cleared.

Typically, it’s the cheapest type of life …

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