We don’t have recourse to the FSO, wholesale repossessions & other IBRC myths

The hype-machine is in full throttle on the sale of the former INBS loans. The fear being that some large evil hedge-fund is out there waiting to repossess homes in the thousands.

There may be such a fund headed by some unknown Dr. Evil, but chances are a hedge-fund is the best outcome for the IBRC mortgage holders.

While some of the points about who does and doesn’t fall under various regulations has been made here already, it is worth pointing out that several other factors must apply.

Firstly is that IBRC loans have no recourse to the FSO already, and loans in the IBRC cannot be changed outside of the original loan terms so people simply can’t get a solution while they are IBRC owned.

This is a problem common in other lenders such as Bank of Scotland who don’t exist here any more, only original loan terms can apply so apart from interest only there is no creativity for a mortgage resolution allowed.

Due to that …

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Sunday Time: OpEd on Mutual Building Societies

The Sunday Times ‘Money’ section ran an opinion piece by Irish Mortgage Brokers on Mutual Building Societies in which we lamented the end of an era but made the point that the benefits of mutuality no longer exist given the market we are in.

Mutual building societies have an interesting history but their purpose was ultimately financial intermediation which is what banks nowadays perform, that, along with pricing and the test of the market have shown that Mutuals no longer have a place in the market on the basis of their structure, rather the market requires firms that exist on the basis of competition just like anybody else.

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