The most important step for preventing future mortgage meltdowns

I have been asked several times ‘what would you change’ in the mortgage market in order to prevent serious financial melt-down in the future, the truth is there is no single thing that will ever do it, our issues are a perplexing intertwining of regulation failure, greed, banking errors, mismanaged risk, fundamental misunderstanding of money markets and national failure. There are key players within this, first and foremost is our government, after that is our central bank/ regulator, and finally financial institutions.

Anyway, the one thing I would change if I could would be the security on asset lending, in a nutshell I would just change one rule, therefore removing the need to revamp the entire system, the rule would mean that asset lending is non-recourse beyond the asset upon which the loan was secured.

In plain English, if you got a mortgage then the only recourse a bank would have wouldn’t be to you (currently you are on the hook for 12yrs and more) it would be to …

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Mortgage Application Requirements: What do I need and Why?

The average mortgage taken out in Ireland is approximately €260,000. Before mortgage providers lend-out such large amounts of money they need to be as sure as possible that the funds will be repaid in full and on time over an agreed period. While a home loan is secured on the property as collateral, this should not reduce the lenders’ lending prudence because repossessing a home in the case of non-repayment of a loan is an absolute last resort which takes a lot of time, costs a whole lot of money and risks generating such grossly negative publicity that it is barely worth it and is entirely unattractive. So, to ensure this possible outcome is seldom reached; lenders vet their potential clients carefully using the following key documents on which to base their underwriting decision…

Photo ID Irish Law demands that a financial institution must establish the identity of a client before entering into any financial transaction. Of course, its logical that …

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