We were asked to comment on loan sales, this took place at the IPAV national conference in Castleknock on the 11th of June 2016.
There has been an ongoing commentary about ‘Tsunami’s’ of repossessions that are occurring right now or just about to and we have been part of what we feel is a more realistic interpretation of the facts.
Yes, people have lost their homes and more will, that is always part of the outcome after a massive financial crisis, one of the largest ever, and in a nation that set records for the size and scope of their financial problems.
To think it could be any other way is the same as expecting a health system where nobody ever dies irrespective of the problems they may have. That kind of belief is not rooted in reality.
We think that the correct response is rapid and fair intervention where warranted, and zero protections where properties are abandoned and no payments are being made.
Within this vista there are those who would have you believe the world is being torn asunder and nobody is doing anything about it.
Here are some of the statistics from the courts covering the first quarter of 2016.
Below is an email excerpt from the Central Bank on the area of court proceedings. We get frustrated with misinformation about stadiums of people doomed to homelessness and sums up around 20,000 court proceedings being bandied about. They are bad numbers and should be ignored, however, it doesn’t stop people from repeating things that are wrong.
There is also the information (not yet public as far as I know) from the Court Service which indicates the live number of cases in the system at the end of the same period was 12,252 again, nowhere near some of the figures that were being trumped about at the time.
> From: CentralBank <*****@centralbank.ie> > Date: ** April 2016 at 15:18:19 GMT+1 > To: ********** > Subject: RE: Clarification of Quarterly Arrears Stats > > Hi *****, Somebody else has just come back to me with a more useful answer for you: The figure for PDH mortgages – at end-December 2015-there were around 13,500 accounts for which court proceedings have been issued (and have not yet concluded). > > …
This was a joint opinion piece by Karl Deeter of Irish Mortgage Brokers and Ross Maguire of New Beginning. Ross is a Senior Counsel and a highly skilled professional in the area of property rights. The point being raised was that property rights and contractual obligations are very well set out in Irish law.
There are those that would have you believe that a person or company can buy your loan and suddenly turf you out, that simply isn’t the case and is factually incorrect. We refer to people sending out that kind of nonsense as being mandarins in the ‘Ministry of Fear’ and make the point that the facts matter.
This was an interesting piece by Louise McBride in the Sunday Independent. The assumptions were based on a fairly hefty mortgage figure, but the general idea remains strong, that if you get a lower mortgage rate you can save money.
Our contribution was to say that in an ere of low interest rates and with rates falling that “The banks all know that interest rates are coming down – and that one way to kill the switcher market is to get more people onto fixed rate mortgages,” said Karl Deeter of Irish Mortgage Brokers. “Banks are playing a defensive game. They’re not competing on variable rates – they’re competing on fixed rates instead.”
To us this is simplistic but also true, if banks fear attrition of their performing loan book the best thing you can do is take high variable margin from those willing to pay it, or who aren’t bothered by it (as is common with older loans) or to defend your position by locking in potential switchers seeking value by offering them value in return for commitment …
A common theme in the frustrations of life generally is where you have a third party who can disrupt the intentions of another and in turn remain fairly unaffected themselves. This article appeared in the Sunday Business Post on the 29th of May and was on that topic.
A system which allows unfair delays to those trying to deliver housing must be scrapped.
Best known for penning The Prince, a Renaissance-era handbook for unscrupulous politicians, Florentine historian Niccolo Machiavelli advised: “Never attempt to win by force what can be won by deception.”
To that end, if there’s one way to annoy a third-party meddler it’s to identify them. It gets their back up.
The ‘deception’ in this respect is the common acceptance of third-party rights. Unconnected third parties should not (and don’t) have the right to intrude on your private life or private moveable property as long as you aren’t breaking the law. But when it comes to immovable or fixed property, we don’t act the same way. We allow anyone to voice their dissent and disrupt a …
This clip is a good insight into the many facets of the housing debate when looking at the ‘crisis’ end of the spectrum. It raised some interesting issues and commentary. One thing we want to state is that there was an implication that if a fund bought your mortgage that you might be able to get thrown out rapidly, we should state clearly that this simply isn’t the case and is likely a misinterpretation of fact than a stance which is there to deliberately mislead.
UTV hosted a conversation about the new Mortgage Bill that went through the Dail last night. The conversation was hosted by Claire Brock and the panel was made up of Pearse Doherty (Sinn Fein), Stephen Curtis (IMHO) and Karl Deeter of Irish Mortgage Brokers.
In this piece which appeared originally in the Sunday Business Post on the 8th of May 2016, Karl Deeter questions the conventional wisdom of calls for a right to housing (or housing equality) being about ‘rights’ and that it is perhaps more about money and governance.
The script after this text in italics is the text of the article that was published.
When we hear people talk about inequality or social issues like housing, is it about money and process or is it about rights? This may seem obvious at first, but when you start to look into it, often it’s not so simple.
It’s obvious that a person with no place to call home isn’t equal to those who have such a place (be it rented or owned) and civil society generally accepts that this implies a certain level of duty on the rest of us.
Usually the state helps to equalise this situation by making the provision of a place to call home possible, be it social housing or emergency accommodation. This would lead to the assumption that …
The Irish Times carried an article by John McCartney (Savills), Lorcan Sirr (DIT Bolton St) and Karl Deeter (Irish Mortgage Brokers) about the issues surrounding a shift away from a home ownership model.
Our point isn’t that there is a definitive ‘right or wrong’ way to provide housing, obviously our market has massive issues at present, but the larger question is the long run effects and how a lack of household savings can turn a property crisis into a pension crisis of sorts.
That is why we need to find new solutions for more than just housing.