Regulation of Vulture funds

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So repossession is only in the case where the courts agree that there is no reasonable effort to pay at least part of your mortgage payments.

Is this not a good thing? If I am not making a reasonable effort to pay my mortgage, then there should be some means for repossession. If I am making a reasonable effort, the courts will protect me.

Otherwise, why should I bother paying anything?
 
Andy836 said:
You are no less likely to loose your house to a repossession order if the loan is owned by a vulture fund than owned by a normal bank.

This has nothing to do with Central Bank regulations. This is purely down to the courts.

As Brendan has pointed out on numerous occasions, the courts will not give an order for repossession if you're making a genuine meaningful effort.
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witz1234,

Take the last two posts with a pinch of salt and a Hail Mary, you are more likely to lose your house if the entity that owns the legal charge over your home is a vulture fund rather than a regulated credit institution. These vulture funds fought hard not to be regulated and paid big bucks to the lobbyists in this regard. If there was no difference between being regulated and unregulated, the funds themselves would not have bothered to intensively lobby the Dept of Finance to be unregulated. You need to do some research regarding other Countries where vulture funds have been allowed a free hand. It will swiftly answer your question. The thing to remind yourself is, vulture funds are not here for the long term, it is short term turnaround and profit that they are after, in other words, if you are in arrears, for you to refinance somewhere else or for them to take possession of the security, YOUR HOME, that is their business model, end of.
 
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Andy836 said:
Yeah, we are both right. And you're wrong.

If the CBI could block or adjust interests rates set by the Banks why then were FF proposing a bill in 2016 that would give the CBI the ability to cap SVR rates?
Let me dumb it down, if they had these powers as you stated they wouldn't need to be given them.
Why did Mr Ed Silby (who you've quoted & referenced above) publicly oppose that bill?

Don't take my word or Sarenco's

Take Mr Silby's word himself:
http://www.thejournal.ie/variable-mortgage-rates-bill-central-bank-2-3127851-Dec2016/

So, in summary - you're wrong on absolutely everything you've said.
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Andy, why pray tell, does the CBI have a requirement that all regulated entities have a "variable interest rate policy statement" on their respective websites as per the CCMA 2017.
 
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witz1234 said:
I just saw an interview on the news which said that when mortgages are transferred to vulture funds, there will be no regulations and they are beyond the reach of the central bank.

Is this true? What is the implication of this for mortgage holders who are transferred to Vulture funds?
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This is true.
 
IdesofMarch said:
Andy, why pray tell, does the CBI have a requirement that all regulated entities have a "variable interest rate policy statement" on their respective websites as per the CCMA 2017.
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Good question - those statements are completely meaningless.

Niall Brady (Sunday Times, 15 November 2015) put it very well –

“Transparency can only be a good thing in financial services but what if the information you get is worthless?

The Central Bank’s latest contribution to the mortgage pricing row is a proposal that lenders should have to explain how variable rates are set. This is unlikely to reveal anything new.

In research published last May, the Central Bank told us why Ireland has some of the highest variable rates in the eurozone: bad debts, difficulties repossessing properties when loans go bad, tracker mortgages that are barely profitable, a lack of competition, the high cost of funds.

Lenders would simply recycle this list, probably without referring to the absence of competition, if required to justify the cost of variable mortgages in writing. Knowing why you are paying over the odds does not sweeten the pill — no matter how sound the explanations.”
 
IdesofMarch said:
This is true.
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No, it's not true that there are no regulations in place, as we have already pointed out to you.

The Governor of the Central Bank has confirmed that borrowers whose loans are sold are afforded the same regulatory protection they had prior to the sale.
 
Sarenco said:
No, it's not true that there are no regulations in place, as we have already pointed out to you.

The Governor of the Central Bank has confirmed that borrowers whose loans are sold are afforded the same regulatory protection they had prior to the sale.
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Vulture funds are NOT regulated at the moment.
 
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IdesofMarch said:
Vulture funds are regulated at the moment.
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Nope. In general, the entities that are used to purchase distressed debt portfolios are unregulated but the entities that service those loans are very much regulated.

Hence, borrowers whose loans are sold are afforded the same regulatory protection they had prior to the sale.
 
Sarenco said:
Good question - those statements are completely meaningless.

Niall Brady (Sunday Times, 15 November 2015) put it very well –

“Transparency can only be a good thing in financial services but what if the information you get is worthless?

The Central Bank’s latest contribution to the mortgage pricing row is a proposal that lenders should have to explain how variable rates are set. This is unlikely to reveal anything new.

In research published last May, the Central Bank told us why Ireland has some of the highest variable rates in the eurozone: bad debts, difficulties repossessing properties when loans go bad, tracker mortgages that are barely profitable, a lack of competition, the high cost of funds.

Lenders would simply recycle this list, probably without referring to the absence of competition, if required to justify the cost of variable mortgages in writing. Knowing why you are paying over the odds does not sweeten the pill — no matter how sound the explanations.”
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Thank you so very much for highlighting this to readers, foreseeability, with regard to variable rate clauses employed by Irish banks within their contractual clauses, is a big issue in this Country. When it is raised within affidavits against possession in Irish Courts, guess what, the cases are settled and the actions struck out. I hope to open a thread on the issue shortly.
 
Guys, I have removed personalised posts and am closing the thread temporarily to allow you all cool down.

I fully appreciate that it is frustrating if the other person does not agree with your interpretation of the facts, but you should be able to discuss a factual issue without making personalised comments.



Brendan
 
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